Why Does Quantity Demanded Decrease When Price Increases

question 82

Multiple Choice

Why does quantity demanded decrease when price 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 the above are correct.

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Definitions:

Pecuniary Interest

A financial interest, or the prospect of financial gain or loss, that may influence an individual's decisions or actions.

Insurable Interest

A financial or economic stake in the life or property insured, allowing an individual or entity to purchase insurance on the item or person.

Property

An area or thing owned by someone, which includes tangible assets like real estate and personal property, as well as intangible rights.

Insured

A person or entity covered under an insurance policy, providing protection against specified risks or losses.