If the price of a product rises and as a result consumers decrease their purchases,then

A) demand has increased.
B) demand has decreased.
C) quantity demanded has increased.
D) quantity demanded has decreased.
E) both demand and quantity demanded have increased.

Question

Randy Colon · Accepted Answer

Final Answer : D, Explanation :  When there is a rise in the price of a product and consumers decrease their purchases, it means that there is a decrease in the quantity demanded. This is because consumers are less willing or able to buy the product at the higher price. Demand, on the other hand, refers to the willingness and ability of consumers to buy a product at various prices. The increase or decrease in demand is determined by factors other than price, such as changes in consumer preferences or income level.

If the price of a product rises and as a result consumers decrease their purchases,then

A) demand has increased.
B) demand has decreased.
C) quantity demanded has increased.
D) quantity demanded has decreased.
E) both demand and quantity demanded have increased.

Definitions

Learning Objectives

Learning Objectives

Related questions

If the price of a product rises and as a result consumers decrease their purchases,thenA) demand has increased.B) demand has decreased.C) quantity demanded has increased.D) quantity demanded has decreased.E) both demand and quantity demanded have increased.

Definitions

Learning Objectives

Learning Objectives

Related questions

If the price of a product rises and as a result consumers decrease their purchases,then

A) demand has increased.
B) demand has decreased.
C) quantity demanded has increased.
D) quantity demanded has decreased.
E) both demand and quantity demanded have increased.