173k views
2 votes
What effect will a drop in price most likely have?

User Noremac
by
6.4k points

1 Answer

7 votes
The effect that a drop in price will most likely have is increase the quantity demanded of goods.
If something becomes cheaper than it used to be, people are going to buy more of it because it is cheap now. Thus, the demand for that particular good will rise.
User JM At Work
by
5.7k points