What happens to quantity demanded when the price decreases for a normal good?

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Prepare for the TAMU ECON202 Principles of Economics Exam 1 with detailed study guides and multiple choice questions. Boost your understanding and confidence ahead of exam day!

When the price of a normal good decreases, the quantity demanded typically increases. This relationship is grounded in the law of demand, which states that all else being equal, a decrease in the price of a good will lead to an increase in the quantity demanded. Consumers respond to lower prices by purchasing more of the good because it becomes more affordable, ultimately leading to a higher quantity demanded. This reflects a positive consumer response to price changes for normal goods, where demand increases when income remains the same or rises, and price decreases enhance the purchasing power of consumers.

In contrast, if the price were to increase, the quantity demanded would typically decrease, as consumers may find the good less appealing or switch to alternatives. If the price were to remain the same, quantity demanded would not change. Finally, the concept of elasticity describes how responsive quantity demanded is to price changes; however, this does not directly address how quantity demanded itself changes when price decreases, making that option less relevant in this context.