Question

based on the graph, what would it mean if quantity falls from 500 units to 300 units?
the price increased.
the price decreased.
the demand increased.
the demand decreased.

Explanation:

In a demand - price graph, when the quantity demanded falls (from 500 to 300 units), according to the law of demand (which states that there is an inverse relationship between price and quantity demanded, ceteris paribus), this implies that the price has increased. A movement up along the demand curve (which is upward - sloping in this case, but typically demand curves are downward - sloping; assuming it's a standard interpretation) shows that as quantity demanded decreases, price increases.

Answer:

The price increased.