Question

Other things remaining unchanged, the lower the price of a good or service, the:

a) Larger will be the quantity demanded.
b) Smaller will be the quantity demanded.
c) Smaller will be the quantity consumed.
d) Smaller will be the demand.

Answer 1

The lower the price of a good or service, the larger will be the quantity demanded.

Step-by-step explanation:

The law of demand states that as the price of a good or service decreases, the quantity demanded of that good or service will increase. This means that the lower the price of a good or service, the larger the quantity demanded. Conversely, as the price of a good or service increases, the quantity demanded will decrease. For example, if the price of a pair of shoes is lowered, more people will be willing and able to purchase the shoes, resulting in a larger quantity demanded.