Which will cause a decrease in quantity demanded?
A) a decrease in the number of consumers
B) a decrease in income
C) an increase in income
D) a rise in the price of the product
E) a fall in the price of the product

Question

Quizplus · Accepted Answer

When the price of a product increases, consumers are less willing to buy it, leading to a decrease in quantity demanded. A decrease in the number of consumers (A) would also lead to a decrease in quantity demanded, but the question asks for the cause of the decrease, not the result. A decrease in income (B) would normally lead to a decrease in demand, but the question asks for a decrease in quantity demanded, which is a movement along the demand curve caused by a change in price. An increase in income (C) would lead to an increase in demand, which would shift the demand curve to the right. A fall in the price of the product (E) would lead to an increase in quantity demanded, not a decrease.

Which Will Cause a Decrease in Quantity Demanded