Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It will decrease.
B
It will increase.
C
It will remain the same.
D
It will fluctuate unpredictably.
Understanding the Answer
Let's break down why this is correct
Answer
The Law of Demand states that if the price of a good goes down, people will usually want to buy more of it. This happens because when something is cheaper, more people can afford it, and those who already wanted it might buy even more. For example, if the price of ice cream drops, more people will decide to buy ice cream, either because they can now afford it or because they see it as a good deal. As a result, the quantity demanded increases when the price decreases. This relationship helps businesses understand how to set their prices to attract more customers.
Detailed Explanation
When prices go down, people want to buy more of that good. Other options are incorrect because Some might think that lower prices mean less demand, but that's not true; It's a common mistake to think that demand stays the same when prices change.
Key Concepts
Law of Demand
Topic
Supply and Demand Interactions
Difficulty
easy level question
Cognitive Level
understand
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