Final answer:
When the price of a good or service increases, demand typically decreases due to the law of demand, which suggests an inverse relationship between price and quantity demanded.
Step-by-step explanation:
When the price of a good or service increases, what typically happens is that the demand decreases. This is due to the law of demand which states an inverse relationship between price and quantity demanded. As prices rise, consumers often find ways to reduce their consumption since the cost of purchasing these goods or services has become higher. Therefore, an increase in price will generally lead to a decrease in the quantity demanded, keeping other factors constant.
For instance, if the price of a gallon of gasoline rises, people may change their behavior to consume less. They could start carpooling, using public transit, or planning trips more efficiently. This indicates that when prices increase, the total number of units purchased (quantity demanded) tends to fall as consumers adjust to the new price level.