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    Question

    If the price of a good increases while all other factors

    remain constant, what is most likely to happen according to the law of demand?
    A Demand for the good will increase Correct Answer Incorrect Answer
    B Quantity demanded will decrease Correct Answer Incorrect Answer
    C Demand will remain unchanged Correct Answer Incorrect Answer
    D Supply will decrease Correct Answer Incorrect Answer
    E Quantity supplied will decrease Correct Answer Incorrect Answer

    Solution

    The law of demand states that, ceteris paribus (all other things being equal), when the price of a good rises, consumers purchase less of it; when the price falls, they buy more. This inverse relationship between price and quantity demanded is one of the fundamental principles of microeconomics.

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