What happens to quantity demanded when price decreases on a typical downward-sloping demand curve?

What happens to quantity demanded when price decreases on a typical downward-sloping demand curve?

• A. It decreases
• B. It increases
• C. It stays the same
• D. It becomes unpredictable

Answer: (B)

When price falls on a typical downward-sloping demand curve, quantity demanded rises. A lower price makes the good more affordable, boosting purchasing power and making substitutes relatively less attractive, so more people buy the good and existing buyers purchase more. This is a movement along the demand curve, not a shift of the curve itself, assuming all other factors stay constant. The other options don’t fit because the basic relationship shows an increase in quantity demanded as price decreases.

When price falls on a typical downward-sloping demand curve, quantity demanded rises. A lower price makes the good more affordable, boosting purchasing power and making substitutes relatively less attractive, so more people buy the good and existing buyers purchase more. This is a movement along the demand curve, not a shift of the curve itself, assuming all other factors stay constant. The other options don’t fit because the basic relationship shows an increase in quantity demanded as price decreases.