Holding everything else constant, a decrease in the price of bicycles will result in a. a decrease in the quantity of bicycles demanded. b. an increase in the demand for bicycles. c. a decrease in the supply of bicycles. d. an increase in the quantity of bicycles demanded.

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Business

Hudson Proctor

29 August, 20:13

Holding everything else constant, a decrease in the price of bicycles will result in a. a decrease in the quantity of bicycles demanded. b. an increase in the demand for bicycles. c. a decrease in the supply of bicycles. d. an increase in the quantity of bicycles demanded.

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Bodie · Answer 1

d. an increase in the quantity of bicycles demanded.

Explanation:

For this question, the law of demand applies.

According to the law of demand, when the price of the good increases the quantity demanded of that good would be decreased keeping other things constant and when the price of the good decreases the quantity demanded of that good would be increased keeping other things constant.

It reflects the inverse relationship between the price and the quantity demanded of the good.