1. If the price of a good increases, what happens to demand?

Question

1. If the price of a good increases, what happens to demand?

Answer 1

Demand declines as price increases. Its call demand destruction. A current case and point is the price of oil/gasoline. As gasoline prices rise, less and less people drive because its unaffordable. As such, demand is destroyed.

Answer 2

There is always a max price that the general population is willing to pay for a product.  Coke for instance in Canada is 8.00 a case of 24.  Well the Soda companies are now slightly lowing the price $7 and quantity 18.  Do the math. was .33 a can now .44  Do think I now wait for sales and stock up?  Demand goes down.

Answer 3

If the demand for the commodity is inelastic the demand will remain substantially the same. If the demand is elastic, people will put off buying the commodity or find a substitute and the demand will decline.

Basic foodstuffs, energy, housing etc. all have relatively inelastic demand. You have to do something or you'll die. You can cut back, but not cut out.  

Answer 4

Demand stays the same, but the Quantity Demanded decreases.  Make sure to get your terminology correct.