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The price of cotton clothing falls. As a result_________.

a. The quantity demanded for cotton clothing increases.
b. The demand for cotton clothing increases.
c. The demand for cotton clothing decreases.
d. The quantity demand for cotton clothing decreases.

1 Answer

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Answer:

a. The quantity demanded for cotton clothing increases.

Step-by-step explanation:

Demand is a term used to describe the relationship between the price of a commodity and the quantity ordered. According to the law of demand, should the price of a commodity rise, then the demand will fall. The opposite is also true.

If the price of cotton clothing falls, it means more people in the market will afford to buy them. The more buyers a product has in the market, the higher its demand. Demand has two elements, willingness to buy and affordability. Quantity demanded refers to the exact volumes buyers are willing to pay at a particular price. A lower price will lead to increase sales volume which is an increase in the quantity demanded.

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