The effect on sales of an increase in price is a decrease in:

Question

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The law of demand states that when the price of a good increases, the quantity demanded decreases. This means that people will be less willing to buy the good at a higher price, leading to a decrease in sales. Therefore, an increase in price will lead to a decrease in the quantity demanded, not demand or supply. The quantity supplied may also decrease if producers are unable to sell as much of the good at the higher price.

The Effect on Sales of an Increase in Price Is