Economics Q102

102Which of the following best describes the relationship shown by the AD curve?

A
When price level decreases, the quantity of goods and services demanded decreases.
B
When price level decreases, the quantity of goods and services demanded increases.
C
Price level has no impact on the quantity of goods and services demanded.

Option : B
Explanation : The AD curve depicts an inverse relationship between the price level and real income/output. When price level decreases, the quantity of goods and services demanded increases.

Forgot your password?

I agree with the Terms.