True or False
: According to the laws of supply and demand, when the price of a good rises, less of that good will be sold.
The correct answer is "False". The reason that the price increased was because of a change in demand. When the demand curve shifts to the right, the rice raises and more of the good is sold, not less.
A change in demand could happen because of a change in tastes and preferences, an increase in income, future expectations of a higher price, an increase in the number of buyers, and a change in the price of a related good.