Which of the following will not decrease the demand for a commodity?
A) The price of a substitute decreases.
B) Income falls and the good is normal.
C) The price of a complement increases.
D) The commodity's price increases.

Question

Quizplus · Accepted Answer

An increase in the commodity's price does not decrease demand; it decreases the quantity demanded. Demand refers to the desire and ability to purchase a product at various price levels, while quantity demanded refers to the amount of a product consumers are willing and able to buy at a specific price. Changes in price result in movements along the demand curve, not shifts of the demand curve itself.

Which of the Following Will Not Decrease the Demand for a Commodity