What happens to the demand for a product if the price decreases?

When the price of a product decreases, the demand typically increases, illustrating a fundamental concept in economics known as the law of demand. This law states that, all else being equal, when the price of a good or service falls, the quantity demanded by consumers usually rises.

This response is driven by the idea that lower prices make products more affordable to a larger number of consumers. As the price drops, existing customers may be encouraged to buy more of that product, while new customers who previously found the price too high may enter the market, leading to an overall increase in demand.

It's important to note that this increase in demand is distinct from changes in quantity demanded, which refers specifically to movement along the demand curve due to price changes. The overall shift in demand occurs because consumers' perceptions of value and affordability change with the reduced price. Thus, when prices decline, the demand for the product tends to rise, aligning perfectly with the correct answer.