The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1

-The change in the quantity demanded of any good is always caused by:
A)a change in consumers' preferences for that good.
B)a change in the general income levels of the consumers who buy that good.
C)an increase or decrease in the population.
D)a change in the price of that good.
E)a change in the price of substitute goods.

Question

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1
 
-The change in the quantity demanded of any good is always caused by:
A)a change in consumers' preferences for that good. 
B)a change in the general income levels of the consumers who buy that good. 
C)an increase or decrease in the population. 
D)a change in the price of that good. 
E)a change in the price of substitute goods.

Quizplus · Accepted Answer

The change in the quantity demanded of a good is always caused by a change in the price of that good. This is known as the law of demand, which states that as the price of a good increases, the quantity demanded of that good decreases, and as the price of a good decreases, the quantity demanded of that good increases. The other options may have an impact on demand for a good, but they do not directly cause a change in the quantity demanded.

The Table Given Below Reports the Quantity Demanded of a Good