The demand for a good will increase if:
A)there is a decrease in the price of the good.
B)the price of inputs needed in the production of the good decrease.
C)there is an increase in the number of consumers in this market.
D)the price of a complementary good increases.

Question

Quizplus · Accepted Answer

An increase in the number of consumers in the market will lead to an increase in demand for the good. This is because more people are interested and willing to purchase the good at any given price. Conversely, a decrease in the number of consumers will lead to a decrease in demand. Options A and D are incorrect because a decrease in the price of the good or an increase in the price of a complementary good will affect the quantity demanded of the good, not the overall demand. Option B is incorrect because a decrease in the price of inputs needed in production may lead to an increase in the supply of the good, but it does not necessarily affect the demand.

The Demand for a Good Will Increase If