The quantity of a good demanded tends to increase as its price falls because:

Question

Quizplus · Accepted Answer

This is the law of demand - as the price of a good decreases, consumers are more likely to purchase it because it has become relatively cheaper compared to other goods. This leads to an increase in quantity demanded. This is represented by a movement along the demand curve, not a shift of the demand curve. Factors that can shift the demand curve include changes in consumer preferences or income.

The Quantity of a Good Demanded Tends to Increase as Its