In case a decrease in price of a commodity results in an increase in its demand on a negatively sloping demand curve, it is called:
An increase in quantity demanded
The question turns on a precise distinction in demand analysis: the difference between a movement along a given demand curve and a shift of the whole curve.
When the price of a commodity falls and, as a result, buyers purchase more of it while the demand curve itself stays where it is, the change is a movement down along that same negatively sloping curve. This is called an increase in quantity demanded, because only the quantity has responded, and it has responded to a change in the commodity's own price.
An increase in demand means something different: it is a rightward shift of the entire demand curve, caused by factors other than the good's own price - a rise in income, a change in tastes, or a change in the price of a related good. Since nothing here has shifted the curve, that option is wrong. The Law of Demand states the general inverse relationship between price and quantity demanded; it is the principle that explains why the movement occurs, but it is not the name of the change being described. As only one option is correct, any of the above also fails.
Hence a decrease in price raising purchases along the same curve is an increase in quantity demanded.
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