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- Subject
- Supply and Demandeconomics-mcqs › supply-and-demand
- Published
- 29 May 2019
- Last updated
- 28 May 2026
What is the effect on demand when the price rises, assuming all other factors remain constant?
Multiple choice question for Supply and Demand. Select an option, then review the explanation below.
Explanation
When the price of a good increases and other factors stay the same, the quantity demanded decreases, resulting in a contraction of demand rather than a shift of the demand curve.
More Supply and Demand MCQs
Practice related questions from the same subject.
- 1.What is the typical shape of a demand curve?
- 2.What term describes a company earning profits beyond its normal profit level?
- 3.How does an increase in marginal cost affect output, and how does an increase in marginal revenue impact output?
- 4.Marginal revenue refers to the ________ resulting from producing an additional ________ of output.
- 5.What are firms generally assumed to do with their costs and profits?