If automobiles are like most goods and the price of automobiles rises,then holding all else constant,the
A) demand for automobiles will rise
B) quantity demanded of automobiles will fall
C) demand for automobiles will fall
D) quantity demanded of automobiles will rise
E) supply of automobiles will fall

Question

Quizplus · Accepted Answer

According to the law of demand, as the price of a good rises, the quantity demanded of that good decreases. Therefore, holding all else constant, if the price of automobiles rises, the quantity demanded of automobiles will fall.

If Automobiles Are Like Most Goods and the Price of Automobiles