The demand for a good will increase if:

Question

Quizplus · Accepted Answer

An increase in the number of consumers in the market will create more demand as there are more potential buyers of the good. A decrease in the price of the good (choice A) may increase demand in the short term, but in the long term, it may lead to consumers waiting for even lower prices. The decrease in the price of inputs needed (choice B) may lead to an increase in supply rather than demand. The increase in the price of a complementary good (choice D) may decrease demand as it becomes more expensive for consumers to buy both goods together.

The Demand for a Good Will Increase If