Which of the following statements is true about the impact of an increase in the price of lettuce?

• A. The demand curve for lettuce will shift to the right.
• B. Consumers will buy more lettuce because it is now more expensive.
• C. The quantity demanded of lettuce will decrease, all else equal.
• D. The quantity demanded of lettuce will increase, all else equal.

Answer: (C)

Verified step by step guidance

1. Understand the difference between a change in demand and a change in quantity demanded. A change in demand means the entire demand curve shifts, while a change in quantity demanded means movement along the same demand curve due to a price change.
2. Recall the Law of Demand, which states that, ceteris paribus (all else equal), when the price of a good increases, the quantity demanded decreases, and vice versa.
3. Analyze the impact of an increase in the price of lettuce: since price is changing, this causes a movement along the demand curve, not a shift of the demand curve itself.
4. Identify that an increase in price leads to a decrease in quantity demanded, which means consumers will buy less lettuce, not more.
5. Conclude that the correct statement is: 'The quantity demanded of lettuce will decrease, all else equal,' because this aligns with the Law of Demand and the concept of movement along the demand curve.