Post Utme Achievers University 2018 Commerce Question 24

Practice objective / multiple choice question 24 from the 2018 Post Utme Achievers University Commerce examination.

Post Utme Achievers University 2018 Commerce Objective / Multiple Choice
Question 24 POST_UTME_ACHIEVERS_UNIVERSITY • 2018 • COMMERCE • objective

A firm's demand curve is downward-sloping, indicating that as the price of the good decreases, the quantity demanded increases. Which of the following is a correct explanation for this phenomenon?

Answer Options

Correct Answer A. As the price of the good decreases, the consumer's purchasing power increases, leading to an increase in the quantity demanded.
B. As the price of the good decreases, the consumer's income decreases, leading to a decrease in the quantity demanded.
C. As the price of the good decreases, the consumer's preferences shift towards the good, leading to an increase in the quantity demanded.
D. As the price of the good decreases, the consumer's supply curve shifts to the left, leading to a decrease in the quantity supplied.
Correct Answer
A
Correct Option:
As the price of the good decreases, the consumer's purchasing power increases, leading to an increase in the quantity demanded.

About This Question

This is Post Utme Achievers University 2018 Commerce Question 24. It is one of the objective questions from the 2018 Post Utme Achievers University Commerce examination.

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