Why Does the Quantity Demanded Decrease When the Price of a Good

question 15

Multiple Choice

Why does the quantity demanded decrease when the price of a good increases?

• A)People choose to reduce consumption of the item.
• B)People "drop out" of the market for the item.
• C)People find substitutes for the item.
• D)All of these responses are correct.

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Definitions:

2,000-Calorie

A reference daily intake level used for nutrition labeling, representing an estimated amount of calories a typical adult should consume daily to maintain their weight.

U.S. Department of Agriculture

A federal department responsible for developing and executing federal laws related to farming, forestry, rural economic development, and food.

MyPlate

An educational tool provided by the United States Department of Agriculture to guide individuals in eating a balanced diet comprising adequate proportions of different food groups.

Dietary Reference Intakes

A set of reference values used to plan and assess nutrient intakes of healthy people, including guidelines for vitamins, minerals, and other dietary components.