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What effect does an increase in the price of a commodity generally have on the quantity demanded?
  • a)
    It increases the quantity demanded.
  • b)
    It leads to a shift in demand to the right.
  • c)
    It decreases the quantity demanded.
  • d)
    It has no effect on quantity demanded.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What effect does an increase in the price of a commodity generally hav...
According to the law of demand, an increase in the price of a commodity typically results in a decrease in the quantity demanded. This is because higher prices make the good less affordable for consumers, reducing their willingness to purchase it.
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