The quantity demanded (Qd) of a soft drink brand \(X\) has decreased. This could be because ____________
A. X's consumers have had an increase in income B. the price of \(X\) has increased C. X's advertising is not as effective as in the past D. the price of rival brand \(Y\) has increased.
Correct Answer: B
Explanation
the first law of demand states that the higher the price the lower the quantity demanded and vice versa. Thus, the major factor that can cause a decrease in the quantity demand of \(X\) is the increase in the price of \(X\)
