passwella.
Menu

JAMB Economics 2013 Question 8

Question 8

Theory of Demand

An increase in the price of a commodity will result in

  1. A.a decrease in quantity demanded.
  2. B.an increase in demand.
  3. C.an increase in quantity demanded.
  4. D.a decrease in demand.
Show the answer and explanation

Answer: A (a decrease in quantity demanded.)

Explanation

By the law of demand, a higher price reduces the quantity demanded (a movement along the curve).