Question:
When the price of rice increases it is expected that the
(1) quantity demanded of rice increases.
(2) quantity supplied of rice decreases.
(3) quantity demanded of rice decreases.
(4) demand for rice decreases.
(5) supply of rice increases.
Correct Answer:
(3)
Answer Explanation:
According to the Law of Demand, an increase in the price of a good leads to a decrease in its quantity demanded (a movement along the demand curve), not a shift in the entire demand curve itself.
Topic: Demand & Supply Year: 2021
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