The quantity demanded of a soft drink brand A has decreased. This could be because.
A
A's consumers have has an increase in income
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B
The price of A has increased
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C
A's advertising is not as effective as in past
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D
The price of rival brand B has increased
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Solution
The correct option is B The price of A has increased solution:
The law of demand directly say that when price of a good is increased its demand is decreased
The law of demand states that other factors being constant price and quantity demand of any good and service are inversely related to each other. When the price of a product increases, the demand for the same product will fall.