If Price Falls, What Happens to the Demand for a Product

question 24

Multiple Choice

If price falls, what happens to the demand for a product?

• A) It increases.
• B) It decreases.
• C) It does not change.
• D) Uncertain--economic theory has no answer to this question.

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Definitions:

Positive

Characterized by the presence of or emphasizing what is good or beneficial in a situation or person.

Negative

Denotes a detrimental or undesirable outcome, perception, or characteristic that can affect morale, productivity, and overall performance in various contexts.

Biases

Prejudices or inclinations that affect one’s judgment or decision-making process, often in an unfair way.

Low Risk

A classification indicating a lesser chance of loss, harm, or failure, often used in finance, health, and safety assessments.