Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Increase in consumer income
B
Decrease in the price of a substitute good
C
Increase in the number of consumers
D
Increase in the price of the product itself
Understanding the Answer
Let's break down why this is correct
Answer
A decrease in demand for a product usually happens when people want to buy less of it for some reason. For example, if the price of a substitute product, like tea when considering coffee, goes down, more people might choose to buy tea instead of coffee. This shift can happen because consumers feel they are getting better value for their money with the cheaper option. Additionally, if people's incomes decrease or if there are negative health reports about a product, they may also decide to buy less of it. In this way, changes in consumer preferences or economic conditions can lead to a decrease in demand for a product.
Detailed Explanation
When the price of a substitute good goes down, people might buy that instead. Other options are incorrect because Some might think that if people have more money, they will buy more of everything; It seems like more people would mean more demand, but that's not always true.
Key Concepts
Factors Affecting Demand
Shifts in Supply
Topic
Understanding Demand and Supply
Difficulty
medium level question
Cognitive Level
understand
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