Holding all other factors constant, consumers demand more of a good theGroup of answer choiceshigher its price.lower its price.steeper the downward slope of the demand curve.steeper the upward slope of the demand curve.
Question
Holding all other factors constant, consumers demand more of a good theGroup of answer choiceshigher its price.lower its price.steeper the downward slope of the demand curve.steeper the upward slope of the demand curve.
Solution 1
Consumers demand more of a good the lower its price.
Here's why:
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The Law of Demand states that, all else being equal, as the price of a good increases, the quantity demanded decreases, and vice versa.
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This is because as the price of a good decreases, it becomes more affordable and consumers are more likely to buy it.
Solution 2
Consumers demand more of a good the lower its price.
Here's why:
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The Law of Demand states that, all else being equal, the quantity demanded of a good falls when the price of the good rises, and vice versa.
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This is because as the price of a good decreases, consumers find it more attractive to purchase, and thus demand more of it.
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Therefore, holding all other factors constant, consumers demand more of a good the lower its price.
Similar Questions
If a good is a Giffen good, thenGroup of answer choicesthere is no optimal level of consumption for the consumer.the demand curve is upward sloping.the demand curve is horizontal.the supply curve is downward sloping.
Other things held equal, demand curves slope downward because: multiple choicean increase in a product's price lowers MU.a decrease in a product's price lowers MU.a decrease in a product's price raises MU per dollar and makes consumers wish to purchase more units.an increase in a product's price raises MU per dollar and makes consumers wish to purchase more units.
What is the shape of a demand curve when consumers have a lot of time to adjust to price changes?A.HorizontalB.VerticalC.FlatD.Steep
A downward sloping demand curve can be derived for a normal product by increasing its price in the consumer-behaviour model and noting
Which one of the following factors will cause movements along the demand curve of good X?A change in the price of good X.A change in the price of complementary good Y.A change in the price of substitute good Z.A change in consumer preferences for good X.
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