Question

the law of supply and demand
quiz complete
1 2 3
how do lower prices tend to affect demand?
they tend to increase the availability of a product.
they tend to decrease the availability of a product.
they tend to increase the interest in a product.
they tend to decrease the interest in a product.

Explanation:

The law of demand states that, ceteris paribus, as the price of a good or service decreases, the quantity demanded (or consumer interest in purchasing) tends to increase. The first two options relate to supply (availability) rather than demand (consumer interest). The fourth option is the opposite of the law of demand. So lower prices make the product more attractive, increasing consumer interest.

Answer:

C. They tend to increase the interest in a product.