.

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.