📚 Learning Guide
Demand and Supply Basics
easy

If the price of a good increases, the demand for that good will always decrease, regardless of other factors.

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

True

B

False

Understanding the Answer

Let's break down why this is correct

Answer

When a price goes up, most people buy less of the item because it costs more, so the quantity demanded usually falls. However, this rule is not absolute. Some products, like high‑end watches or luxury cars, are seen as better or more desirable when they are expensive, so people may actually buy more as the price rises. In other cases, a price hike can signal better quality or scarcity, encouraging more purchases. Thus, while price increases often lower demand, other factors can cause the opposite effect.

Detailed Explanation

The law of demand says price and quantity demanded move opposite ways, but other things can change that. Other options are incorrect because The misconception is that price changes always reduce demand.

Key Concepts

Demand
Supply
Price Elasticity
Topic

Demand and Supply Basics

Difficulty

easy level question

Cognitive Level

understand

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.