According to the law of demand, what happens when the price of a good decreases?

The law of demand states that, all else being equal, as the price of a good decreases, the quantity demanded for that good typically increases. This relationship reflects consumer behavior: when a product becomes cheaper, it usually becomes more attractive to buyers, leading them to purchase more of it. This increase in quantity demanded can occur for several reasons, such as the increased affordability of the good, shifting consumer preferences towards the lower-priced item, or an increase in the real income of consumers allowing them to buy more.

Understanding this fundamental relationship is crucial, as it forms the basis for many economic analyses, including how changes in pricing affect market equilibrium and consumer spending patterns. The responses suggesting a decrease in quantity demanded or no change at all contradict this law, while the option regarding an increase in supply relates to the supply side of the market and is not directly applicable to the effect of price changes noted in the demand context.