In which statement(s) are "demand" and "quantity demanded" used correctly? (I) "An increase in the price of tea will reduce the quantity demanded of tea."
(II) "An increase in the price of tea will reduce the demand for sugar used in tea."
A) in both statements I and II
B) in statement I only
C) in statement II only
D) in neither statements I nor II

Question

Quizplus · Accepted Answer

Statement I correctly uses "quantity demanded" as it refers to the change in the amount of tea consumers are willing to buy due to a price change. Statement II correctly uses "demand" as it refers to the overall demand for sugar, which can decrease if the price of tea increases, affecting complementary goods.

In Which Statement(s) Are "Demand" and "Quantity Demanded" Used Correctly