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QuizMultiple Choice

Study Guide and Quiz

Question 1 • GA-Introduction to Business and Technology

If the demand for a product decreases, what is likely to happen?

Answer
A
The supply is likely to increase.
B
The demand is likely to be inelastic.
C
The price is likely to increase.
D
The price is likely to decrease.

Explanation

When demand decreases, buyers are willing to purchase less at each price. If supply stays the same, sellers typically lower the price to encourage purchases and clear the excess supply. Therefore, the price is likely to decrease.

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