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A lower price increases the quantity demanded because
 
A. Supply curves are upward sloping.
B. The lower price will decrease real income.
C. The lower price induces consumers to use this product instead of similar product.
D. Firms produce more at lower prices.

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Prachi Dabas
Prachi DabasLv10
11 Oct 2020

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Related questions

What does an increase in the demand for a product mean?  
A) quantity demanded is greater at each possible price
B) firms make less of the product available for sale
C) consumers respond to a lower price by buying more
D) the demand curve becomes steeper
quantity demanded is greater at each possible price
  B) firms make less of the product available for sale
  C) consumers respond to a lower price by buying more
  D) the demand curve becomes steeper

One reason that the quantity demanded of a good increase when its price falls is that the:

A) Price decline shifts the supply curve to the left.

B) lower price shifts the demand curve to the left.

C) lower price shifts the demand curve to the right.

D) lower price increases the real income of buyers, enabling them to buy more.

The sticky-price theory implies that

A. the short-run aggregate supply curve is upward-sloping.

B. an unexpected fall in the price level induces firms to reduce the quantity of goods and services they produce.

C. menu costs influence the speed of adjustment of prices.

D. All of the above are correct.

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