Consider a company that decreases the price of their product by 50% and finds that quantity demanded goes up by 30%. The company is thinking about changing the price of their product. Which of the following is true?

Q: The law which states the positive relationships between price and quantity supplied is known as…

A: Price and quantity supplied have a direct link between then. This means if price rise then the…

Q: Demand for a commodity refers to

A: Consumers are the people who create demand for a good in an economy. Producers are the people who…

Q: How might companies such as Mars and Nestlé react to an increase in the price of sugar?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What does a downward-sloping demand curve mean about how buyers in the market will react to a higher…

A: A downward-sloping demand curve means that buyers in the market will decrease the demand and…

Q: Which of the following will NOT cause a change in the demand for coffee (illustrated by a shift of…

A: Recall that the demand curve depicts the quantity demanded of a good at different prices. It shows…

Q: What can we expect to occur to hot dog buns if the price of hot dogs were to decrease?

A: Law of demand - If other things remains constant, decrease in price of a good will increase the…

Q: The law of supply states that all other things remaining the same:

A: Demand and supply are important for the market. Demand is the desire of a particular consumer to buy…

Q: If coffee and tea are substitutes, then an increase in the price of coffee a. Shifts the demand…

A: In a market, when two goods are substitutes, their cross price elasticity is positive as the…

Q: If we observe an increase in the price of a good and an increase in the amount of the good bought…

A: If initially the demand curve is D and the supply curve is S, the equilibrium price and quantity are…

Q: When economists say the demand for a product has increased, they mean the demand curve has shifted…

A: Demand refers to the ability and choice of a consumer to buy a particular good.

Q: when the demand for one commodity falls due to the fall in the price of the other good, the two…

A: # We know we have two combination of goods available which are complements and substitutes.…

Q: Coca Cola and Pepsi are substitutes. If the price of Coca Cola decreases, which of the following…

A: Substitute goods refer to the good which are used for each other. Rise in the price of one good…

Q: If consumers consider chicken and turkey to be substitutes, and, ceteris paribus, the price of…

A: Susbtitute Goods: The goods that are similar and can be interchangeably used. for eg. Pepsi and…

Q: What effect will each of the following have on the demand for small automobiles such as the Mini…

A: Demand refers to the amount of willingness and ability of the consumer to purchase the goods and…

Q: Good A (an inferior good) and Good B (a normal good) are viewed by consumers to be substitute…

A: The answer is - (Option B) Decrease in both equilibrium price and quantity

Q: If the percentage decline in quantity is greater than the percentage increase in price, what will be…

A: # For elastic Demand, elasticity of demand is greater than 1 and for inelastic demand the Elasticity…

Q: Which of the following statements about demand is true? The demand curve for a group of consumers in…

A: Demand: It refers to the quantity of a commodity that the consumer is willing and able to buy at…

Q: What effect will each of the following have on the demand for small automobiles such as the…

A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…

Q: The price of a good will tend to fall when there is excess demand for the good. there is excess…

A: Demand: - Demand is the relationship between the quantity demanded and the price of a good. There is…

Q: the measure of the percent change in the quantity of a good demanded divided by the percent change…

A: Price has an inverse relationship with quantity demanded

Q: A change in a relevant factor other than the price of the good itself causes a ________ the demand…

A: Demand curve: It shows a relationship between price and the quantity demanded of a good or service…

Q: If a company is running short of funds and they want to increase revenue. Should you increase or…

A: When the firm runs short of funds then increasing revenue is the best way to fulfill fund…

Q: If new substitutes are developed for a product, what will likely happen to the demand curve for that…

A: The price elasticity of demand measures the responsiveness of the quantity demanded of a good or…

Q: Suppose goods A and B are substitutes. If the price of good A increases, will the demand for good B…

A: Substitute goods are those goods that can be consumed by an individual in place of each other by the…

Q: What is wrong with the following statement ? Demand refers to the willingness of buyers to purchase…

A: Demand in economics refers to the willingness and ability to purchase different quantities of goods…

Q: What happens to demand for normal goods when there is rise in price of substitute goods

A: A normal good is also known as a necessity good. These are the goods that have higher demand when…

Q: What is one consumer food or service for which in the last 10 to 15 years consumers preference has…

A: Market demand for a commodity can change as a result of a change in consumers income, their tastes…

Q: Sometimes the demand may be abnormal, meaning that the law of demand does not apply to the…

A: According to the law of demand, other things being equal, if there is an increase in the price of…

Q: For each of the following changes, determine whether there will be a change in quantity demanded or…

A: There is a change in the quantity demanded when there is a change in price of a product. On the…

Q: If bread and butter are complements then what will happen if there is an increase in the price of…

A:

Q: How has the supply and demand of a specific product affected your/your family’s purchasing…

A: The supply and demand for a specific good affect the consumer in several ways.  The interaction of…

Q: Demand for a good will always rise when the price of a complementary good falls.the price of a…

A: Complementary goods are those goods that are consumed jointly or in conjunction. This means…

Q: . According to the law of demand, when all other factors are held constant, the higher the price,…

A: Answer: Correct option: False (B) Explanation: Law of demand: According to the law of demand there…

Q: The demand for a commodity increases when its 1 (A) price increases (B) price decreases (C) price is…

A: Any change in demand due to a change in price, we term it as a change in quantity demanded. Any…

Q: The curve that shows the relationship between the quantity demand of a product and its price of…

A: It is the graphical way of showing the relationship between the quantity supplied and the price of a…

Q: When the price of one good affect the demand for another good, then the goods are likely to be…

A: The demand for a good gets affected by its price and other determinants such as price of related…

Q: The one saying that everything remaining constant, price and quantity demanded move in opposite…

A: As per the law of demand, the price and quantity demanded move in opposite directions but there are…

Q: A decrease in supply causes the price of coffee to fall

A: Answer: Note: you have not asked anything about the statement so I am just explaining whether the…

Q: Assume that the price of product X rises by 13 percent and the quantity supplied of X rises by 15…

A: The markets are the place where the buyers of various goods and services tend to meet and interact…

Q: If the demand curve for a good is a vertical line at Q = 1, then a decrease in the price of that…

A: Demand curve represent the quantity demanded in the graphical format.

Q: Good B and Good A are substitutes. If the price of Good A rises, what will happen to the demand…

A: Good B and Good A are substitutes. If the price of Good A rises, consumers substitute good B for…

Q: We know that a change in the price of a product causes a movement along the demand curve. Suppose…

A: When the consumers expect that the price of a product rise in future, they will increase the demand…

Q: What will happen to demand curve for normal goods when there is rise in price of substitute goods

A: A replaceable good is a commodity or service that buyers perceive to be exactly the identical as or…

Q: During 2009, incomes fell sharply due to the financial crisis of 2008-2009. This change likely led…

A: The normal goods are goods which demand increases with increase in income that means income effect…

Q: If two goods are substitutes, a decline in the price of one will cause an increase in the demand for…

A: There are different types of goods based on their use, consumer preference & taste, and…