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According to the Low of Demond, When Prices Drop. Supply Increases Quantity Demanded Is Unchanged Demand Will Also Drop Demond Will

Problemas

According to the Low of Demond, when prices drop. supply increases quantity demanded is unchanged demand will also drop demond will increase

Roztwór

Julio professionell · Tutor durante 6 años
Weryfikacja ekspertów
4 (334 Votos)

Respuesta

D. demand will increase

Explicación

## Step 1The Law of Demand is a fundamental principle in economics that states that, all else being equal, as the price of a good or service decreases, the quantity demanded of that good or service will increase. This is because consumers are more likely to purchase a good or service when it is cheaper than when it is more expensive.## Step 2In this problem, the price of a good or service is decreasing. According to the Law of Demand, this would lead to an increase in the quantity demanded.## Step 3The other options provided do not align with the Law of Demand. The Law of Demand does not suggest that the supply increases when prices drop, nor does it suggest that the quantity demanded remains unchanged or that demand will also drop.