Question

.
What effect will a drop in price most likely have?


stabilize the quantity demanded of goods


decrease the quantity demanded of goods


change the law of demand


increase the quantity demanded of goods

Answer 1

A drop in price will most likely have the effect of **increasing the quantity demanded of goods**. According to the law of demand, when the price of a good decreases, consumers are generally more willing to purchase more of that good, leading to an increase in quantity demanded.