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Demand and Supply Basics
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If the price of oranges increases significantly, what is the most likely effect on the quantity of oranges demanded by consumers?

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Learning Path

Question & Answer
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Choose AnswerChoose 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

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

Deep Dive: Demand and Supply Basics

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Definition
Definition

Demand and supply basics cover the fundamental concepts related to the quantities of a product that consumers are willing and able to purchase (demand) and the quantities that suppliers are willing to offer (supply) at different price levels. The law of demand and supply explains the inverse relationship between price and quantity demanded or supplied, leading to the formation of demand and supply curves.

Topic Definition

Demand and supply basics cover the fundamental concepts related to the quantities of a product that consumers are willing and able to purchase (demand) and the quantities that suppliers are willing to offer (supply) at different price levels. The law of demand and supply explains the inverse relationship between price and quantity demanded or supplied, leading to the formation of demand and supply curves.

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