VirtualSC Economics Honors Practice Exam 2025 - Free Economics Practice Questions and Study Guide

Question: 1 / 400

If the price of apples falls from $0.80 to $0.65 per pound, what will happen?

A smaller quantity of apples will be demanded.

No change in the quantity demanded will occur.

A larger quantity of apples will be demanded.

When the price of apples decreases from $0.80 to $0.65 per pound, the fundamental economic principle of demand comes into play: as the price of a good decreases, consumers are typically willing and able to purchase more of that good. This increase in the quantity demanded occurs because lower prices make the product more attractive to buyers.

In this scenario, the reduction in price for apples makes them more affordable, leading consumers to buy more apples than they would at the higher price. This reflects the law of demand, which states that there is an inverse relationship between price and quantity demanded—when prices fall, the quantity demanded tends to rise. Therefore, the response indicating that a larger quantity of apples will be demanded accurately describes the expected outcome of the price drop.

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The supply of apples will decrease.

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