What effect do consumers experience when prices of goods fall?

When the prices of goods fall, consumers experience an increased relative attractiveness of those goods. This is primarily due to the concept of relative price changes; as the price of a particular good decreases, it becomes less expensive relative to other goods and services. This shift in price can lead to a greater perceived value for consumers, encouraging them to buy more of the lower-priced item rather than alternatives.

Additionally, when prices decrease, consumers may feel like they are getting a better deal, which can enhance their purchasing power and overall utility from that good. This increase in attractiveness can lead to an increase in the quantity demanded for the good in question, as consumers are more likely to purchase it when they perceive it to be a bargain compared to its previous price or relative to competing products.