ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increase in price
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decrease in price
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decrease in market size
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None of the above
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Detailed explanation-1: -If the price goes up, the quantity demanded goes down (but demand itself stays the same). If the price decreases, quantity demanded increases. This is the Law of Demand. On a graph, an inverse relationship is represented by a downward sloping line from left to right.
Detailed explanation-2: -Answer and Explanation: The correct answer A.) a decrease in the price of a substitute good.
Detailed explanation-3: -An increase in supply, all other things unchanged, will cause the equilibrium price to fall; quantity demanded will increase. A decrease in supply will cause the equilibrium price to rise; quantity demanded will decrease.
Detailed explanation-4: -Explanation: A decrease in the price of new automobiles would cause a movement along the demand curve. Perceived ugliness and expectations of lower prices would decrease the demand.