A decrease in the price of pizza will cause a(n):
A)increase in demand.
B)increase in quantity demanded.
C)decrease in quantity demanded.
D)decrease in the number of consumers.

Question

Quizplus · Accepted Answer

A decrease in the price of pizza will cause an increase in quantity demanded, but not necessarily an increase in demand. Demand refers to the overall desire for a product at different prices, while quantity demanded refers to the specific amount of a product that consumers are willing and able to buy at a certain price. Therefore, a decrease in price will not necessarily result in new consumers entering the market, but will likely cause existing consumers to purchase more pizza.

A Decrease in the Price of Pizza Will Cause A(n)