Which of the Following Will Cause a Decrease in Demand

question 141

Multiple Choice

Which of the following will cause a decrease in demand?

• A) an increase in the price of the product
• B) an increase in the price of a complementary good
• C) an increase in the price of a substitute good
• D) a decrease in income for an inferior good

---

Definitions:

Interest Rate

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, usually on an annual basis.

Income

The financial earnings received by an individual or entity, typically measured over a set period and derived from wages, investments, or sales.

Cobb-Douglas Utility Functions

A type of utility function used in economics to represent the utility of an individual consumer derived from consuming different amounts of goods or services.

Consumption

The use of goods and services by households or individuals, considered as an economic activity that drives demand and influences economic growth.