Which of the following will NOT increase the demand for iced tea?
A) an increase in advertising that makes drinking iced tea more appealing
B) a decrease in the price of iced tea
C) an increase in the income of consumers (assume that iced tea is a normal good)
D) an increase in the price of iced coffee, a substitute product

Question

Quizplus · Accepted Answer

A decrease in the price of iced tea would not increase the demand for iced tea; instead, it would increase the quantity demanded. Demand refers to the willingness and ability of consumers to purchase a good at various prices, while quantity demanded refers to the amount of a good that consumers are willing and able to purchase at a specific price. Changes in the price of the good itself affect the quantity demanded, not the demand.

Which of the Following Will NOT Increase the Demand for Iced