Which of the following will cause a decrease in the quantity of shoes demanded,ceteris paribus?

Question

Quizplus · Accepted Answer

When the price of shoes increases, consumers will tend to buy fewer shoes since they become more expensive. This is known as the law of demand, which states that there is an inverse relationship between the price of a good and the quantity demanded, ceteris paribus (all other things being equal). Therefore, an increase in the price of shoes will cause a decrease in the quantity of shoes demanded, ceteris paribus.

Option A is incorrect because an increase in income will generally lead to an increase in the quantity demanded of shoes, as consumers have more purchasing power.

Option B is incorrect because a decrease in the price of socks should not directly affect the quantity of shoes demanded, unless they are complements (goods that are typically consumed together), such as sneakers and socks.

Option D is incorrect because an expected increase in shoe prices may lead consumers to buy more shoes now before the prices go up, which would actually cause an increase in the quantity of shoes demanded in the short run.

Which of the Following Will Cause a Decrease in the Quantity