The quantity demanded of a product increases as its price declines because the:
A. lower price results in an increase in supply.
B. demand curve is downsloping.
C. lower price shifts the demand curve rightward.
D. lower price shifts the demand curve leftward.
Answer: B
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The broadest indication of economy-wide inflation is captured by the
A) Consumer Price Index. B) Gross Domestic Product (GDP) deflator. C) Producer Price Index. D) Personal Consumption Expenditure Index.
A firm maximizes profits by charging a lower price to foreign buyers if
A. it has a greater monopoly power in the foreign market than it has in its home market. B. the buyers in the home country have access to cheaper imports from the rest of the world. C. the foreign demand for its good is more elastic than the domestic demand. D. the size of the foreign market is much larger than the home market.