The quantity of a good demanded tends to increase as its price falls because:
a. a decrease in price shifts the demand curve to the right.
b. a decrease in price shifts the demand curve to the left.
c. a decrease in price shifts the supply curve to the right.
d. a decrease in price leads consumers to substitute toward this now relatively cheaper product.
Question 2
If exports and imports both rose, but exports rose less than imports,
a. AD would decrease.
b. AD would increase.
c. AD would be unaffected.
d. AD could either increase or decrease.
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