Holding everything else constant, a decrease in the price of GPS systems will result in
A) a decrease in the quantity of GPS systems demanded.
B) an increase in the demand for GPS systems.
C) a decrease in the supply of GPS systems.
D) an increase in the quantity of GPS systems demanded.

Question

Quizplus · Accepted Answer

According to the law of demand, a decrease in price will result in an increase in the quantity demanded, thereby increasing demand. This means more consumers will be able to purchase GPS systems at a lower price, leading to an increase in the quantity demanded.

Holding Everything Else Constant, a Decrease in the Price of GPS