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According to the law of demand, what usually happens as the price of a commodity falls?

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Question

According to the law of demand, what usually happens as the price of a commodity falls?

Options

  • Demand falls

  • Demand rises

  • Demand stays the same

  • Demand becomes unpredictable

MCQ
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Solution

Demand rises

Explanation:

The law of demand states that, in general, as the price decreases, the quantity demanded increases.

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