One Reason Why the Quantity Demanded of a Good Tends

question 21

Multiple Choice

One reason why the quantity demanded of a good tends to fall as its price rises is that:

• A)the increase in price shifts the supply curve upward.
• B)the increase in price shifts the demand curve downward.
• C)at higher prices, suppliers are willing to supply less.
• D)people feel poorer and cut down on their use of the good.
• E)demand has to fall to restore equilibrium after a price rise.

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