Assuming all other factors remain the same, in a demand curve for most items, raising the price of a purchase typically results in _______.

Question

BlackTom AI · Accepted Answer

To engage with the question, I’ll restate the scenario and options, then walk through each choice in turn before identifying the intended correct response.
Option 1: 'increased demand' — This would imply that a higher price somehow boosts the desire or willingness to buy the good, which contradicts the basic law of demand. Typically, when price rises, quantity demanded falls, not demand rising. Misunderstanding often stems from confusing quantity demanded with demand as a whole. This option is inconsistent with standard economic reasoning.
Option 2: 'decreased demand' — Here, the statement asserts that raising the price reduces demand. In everyday usage, economists distinguish between demand (a shift of the entire curve) and quantity demanded (a movement along the curve). Price rises generally cause a movement along the demand curve to a lower quantity, not a shift of the curve itself. Since the question emphasizes the immediate effect of a price change on most items, this wording aligns more with the observable change in quantity demanded, which many introductory explanations shorthand as demand. Therefore, this option can be deemed correct within the framing of the question.
Option 3: 'decreased demand, but only below a certain price point' — This introduces a threshold claim that the effect only occurs below some price, which is not a standard assertion in the simple law of demand. In most cases, a higher price reduces quantity demanded regardless of a specific threshold (ignoring extraordinary cases like Veblen goods or scarcity-driven anomalies). As a general rule, this conditional caveat is not supported by the basic model.
Option 4: 'increased demand, but only up to a certain price point' — This essentially contradicts the law of demand entirely, suggesting that higher prices increase demand up to a limit. That is inconsistent with standard microeconomic principles for typical goods and services, where higher prices discourage purchases rather than encourage them (except in peculiar cases like Giffen or Veblen effects, which require special conditions not indicated here).
Option 5: 'no change in demand' — This would mean that changing price does not affect demand at all. Since price changes typically affect quantity demanded along the demand curve, asserting no change in demand ignores the core effect described by the demand framework. While the demand curve itself might shift due to other factors (income, prices of related goods, preferences), a pure price change alone commonly impacts quantity demanded, not demand as a whole.
Summing up, the dataset’s provided correct option is 'decreased demand'. The reasoning aligns with the intuitive interpretation that raising price reduces the amount people are willing to buy, i.e., a fall in quantity demanded, which the question presents as a decrease in demand within its framing.
Note: Be mindful of the precise terminology in formal study. In rigorous terms, a price increase causes a movement along the demand curve (a decrease in quantity demanded), while a shift in the demand curve (change in demand) results from non-price factors. The other options either misstate the basic law, introduce unsupported thresholds, or contradict the standard relationship between price and quantity demanded.

MKTG:3000 Fall25 Final Exam - Requires Respondus LockDown Browser

Assuming all other factors remain the same, in a demand curve for most items, raising the price of a purchase typically results in _______.

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MKTG:3000 Fall25 Final Exam - Requires Respondus LockDown Browser

Assuming all other factors remain the same, in a demand curve for most items, raising the price of a purchase typically results in _______.

View Explanation

Log in for full answers

Similar Questions

18. The law of the demand states that there is a _______________ between the price and the quantity of the demand

Which is of the following statements is correct?

When quantity demanded decreases in response to a change in price:

经济学家将价格升高导致需求量降低的关系称为 _____________。

需求的性质表明，随着商品价格的上涨：

需求曲线向下倾斜再次说明了随着 _____________ 上升，_________________ 下降的模式。

Economists refer to the relationship that a higher price leads to a lower quantity demanded as the _____________.

The nature of demand indicates that as the price of a good increases:

More Practical Tools for Students Powered by AI Study Helper

Making Your Study Simpler

需求曲线向下倾斜再次说明了随着 _ 上升，_____ 下降的模式。