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A decrease in the price of good x causes the quantity demand of good X to______...

A decrease in the price of good x causes the quantity demand of good X to______ and the demand to________.

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Answer #1

Increase

stay the same or not change

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A decrease in the price of good x causes the quantity demand for good X to decrease and the demand to stay as it is.

Decrease in the price of good increases the ability to purchase more good so the quantity demanded increases but the effect is on the same demand curve, and the demand curve does not change. A demand curve is shown by price on y-axis and quantity on the x-axis. It means changing price move along with the same demand curve so demand does not change and the quantity demanded changes.

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