Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
The quantity demanded will decrease
B
The quantity demanded will increase
C
The quantity demanded will remain the same
D
The quantity demanded will become unpredictable
Understanding the Answer
Let's break down why this is correct
Answer
When oranges become more expensive, people will usually buy fewer of them because the higher price makes each orange cost more of their money. This is the basic law of demand: as price rises, quantity demanded falls. For example, if the price jumps from $1 to $2 per orange, a family that used to buy 20 oranges a month might cut back to 10 because the total cost is now higher. Thus the most likely effect is a decrease in the quantity of oranges demanded.
Detailed Explanation
When oranges cost more, people usually buy fewer of them. Other options are incorrect because Some think a higher price makes oranges more desirable, but that is a misconception; The idea that price changes do not affect demand is wrong.
Key Concepts
Law of Demand
Price Elasticity
Consumer Behavior
Topic
Demand and Supply Basics
Difficulty
easy level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1If a consumer finds that the marginal utility per dollar spent on apples is greater than that of oranges, what is the most likely cause of this effect?
easyEconomics
Practice
2
Question 2If the price of a product decreases and the quantity demanded increases significantly, what could be a primary reason for this scenario occurring?
easyEconomics
Practice
3
Question 3How does a price elasticity of demand greater than 1 affect consumer behavior when prices increase?
hardEconomics
Practice
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.