If the price of an item falls,then one would expect to see a(n)
A) increase in demand.
B) increase in the quantity demanded.
C) decrease in supply.
D) increase in the quantity supplied.
E) decrease in the number of consumers.

Question

Quizplus · Accepted Answer

According to the law of demand, when the price of an item falls, the quantity demanded of that item increases. Therefore, the correct answer is an increase in the quantity demanded (choice B). Choices A and E are incorrect because the price change does not directly affect the number of consumers or overall demand for the good, respectively. Choice C is incorrect because a decrease in supply would result in a higher price, not a lower price. Choice D is incorrect because a decrease in price would not normally lead to an increase in the quantity supplied.

If the Price of an Item Falls,then One Would Expect