Question 7
Theory of DemandIf the quantity of rice bought decreases from 250 tonnes to 200 tonnes owing to a 2% rise in price, it shows that there is a change in
- A.consumers' income
- B.demand
- C.consumers' tastes
- D.quantity demanded.
Show the answer and explanation
Answer: D (quantity demanded.)
Explanation
A change in the good's own price causes a movement along the demand curve, called a change in quantity demanded.