Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It increases
B
It decreases
C
It remains the same
D
It becomes unpredictable
Understanding the Answer
Let's break down why this is correct
Answer
According to the law of demand, when the price of a good decreases, the quantity demanded for that good usually increases. This happens because people are more willing to buy something when it costs less. For example, if a popular video game originally costs $60 and then goes on sale for $40, more people are likely to buy it because it is more affordable. As a result, the lower price encourages more customers to make a purchase, leading to higher sales. This relationship is important in understanding how prices affect consumer behavior in the market.
Detailed Explanation
When the price of a good goes down, more people want to buy it. Other options are incorrect because Some might think that lower prices mean less demand; It's a common mistake to believe that price changes don't affect demand.
Key Concepts
Law of Demand
Topic
Understanding Demand and Supply
Difficulty
easy level question
Cognitive Level
understand
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