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QuizMultiple Choice

The Law of Supply and Demand — Quiz

Question 1 • Personal Finance and Economics

How do lower prices tend to affect demand?

Answer
A
They tend to decrease the interest in a product.
B
They tend to decrease the availability of a product.
C
They tend to increase the interest in a product.
D
They tend to increase the availability of a product.

Explanation

When a product’s price falls, it becomes more affordable, so more consumers are usually willing and able to buy it. This tends to increase interest in the product and raise the quantity demanded. Lower prices do not necessarily change how much of the product is available.

AI-written and checked against the verified answer.

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