Question

Which of the following will cause a decrease in the quantity demanded while leaving the demand unchanged?

[1 mark]

• A. An increase in the price of complementary goods
• B. A decrease in the price of substitute goods
• C. An increase in the price of goods
• D. An increase in income when the goods are inferior

Answer 1

The correct option is C An increase in the price of goods

There is an inverse relation between the price of the commodity and the quantity demanded. Thus, for a decrease in the quantity demanded, the price must increase.