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WAEC Economics 2006 Question 16

Question 16

Theory of Demand

In the normal market situation, when the price of a commodity rises, the

  1. A.demand for the commodity will rise
  2. B.demand for the commodity will fall
  3. C.supply of the commodity will be constant
  4. D.supply of the commodity will fall.
Show the answer and explanation

Answer: B (demand for the commodity will fall)

Explanation

By the law of demand, a higher price leads people to buy less of the commodity.