An Increase in Quantity Demanded Is Caused by

question 314

Multiple Choice

An increase in quantity demanded is caused by

• A) an increase in income.
• B) a decrease in the price of the good.
• C) a decrease in the price of a complement.
• D) a change in expectations about price in the future.

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Definitions:

Demand Function

A mathematical expression that describes the relationship between the quantity of a good demanded and its price, along with other factors such as income and prices of related goods.

Market Demand Curve

Represents the total quantity of a good that all consumers in a market are willing and able to purchase at each possible price over a period of time.

Individual Demand Curves

Graphical representations showing the relationship between the quantity of a good that a single consumer would buy at each price.

Price Elasticity

Measures the responsiveness or sensitivity of the quantity demanded for a product to a change in its price.