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What usually happens to demand when the price of a product increases, holding other factors constant?

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Question

What usually happens to demand when the price of a product increases, holding other factors constant?

Options

  • Demand increases

  • Demand decreases

  • Demand stays the same

  • Demand becomes unpredictable

MCQ
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Solution

Demand decreases

Explanation:

Generally, price and demand move in opposite directions; an increase in price leads to a decrease in demand.

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