Identify the Reasons Why the Quantity Demanded of a Product

question 1

Multiple Choice

Identify the reasons why the quantity demanded of a product increases as the price of that product decreases.

• A) as the price declines,the real income of the consumer increases
• B) as the price of product A declines,it makes it more attractive than product B
• C) as the price declines,the consumer will always demand more on each successive price reduction
• D) a and b
• E) a and c

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Definitions:

Industrial Fiber

A type of fiber used in manufacturing processes, typically characterized by high strength and durability suitable for industrial applications.

Finished Products

Goods that have completed the manufacturing process and are ready for sale.

Cane Juice

The liquid extract obtained from the crushing of sugarcane, used as a sweetener or beverage.

Molasses

A thick, dark syrup produced during the refining of sugar or from sorghum, used as a sweetener or in industrial alcohol production.