What happens to quantity demanded of a product when the price is decreased?

Answer 1

Under normal conditions this would result in an increased consumption or demand for an item. There are certain exceptions to this logic though. For instance if a product or service is of inferior quality a decreased price may not return the desired results of more demand. There is always the possibility that the item is not a popular one or serves no real useful purpose as well. Therefore a price decrease may never result in a corresponding higher demand for the items. Other factors that may come into play are financial situations of consumers. If consumers are barely able to afford the necessities of life, perhaps no amount of price decreases will be an incentive to consumers facing these hardships. In these days of economic uncertainty consumers are reevaluating their needs against their wants and adjusting their purchases accordingly. Of course there is always the possibility that some individuals will forsake common sense over emotional attachments to products, resulting in additional financial uncertainty in ones situation.