Section: Principles of Microeconomics

10) Which of the following causes an increase in demand?

An increase in the price of a complementary good.
A decrease in the price of the good.
An increase in the price of the good.
An increase in the price of a substitute good.
Both B and D

Explanation

If the price of the good decreases then the demand for that good increases. Also, if the price of a substitute good increases then the demand for the other good increases.

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