Table 4-1
-Refer to Table 4-1. If the market consists of Michelle and Laura only and the price falls by $1, the quantity demanded in the market increases by
A)2 units.
B)3 units.
C)4 units.
D)5 units.

Question

Table 4-1 
-Refer to Table 4-1. If the market consists of Michelle and Laura only and the price falls by $1, the quantity demanded in the market increases by
A)2 units. 
B)3 units. 
C)4 units. 
D)5 units.

Quizplus · Accepted Answer

According to the table, when the price falls by $1, Michelle's demand increases by 1 unit and Laura's demand increases by 2 units. Therefore, the quantity demanded in the market increases by 3 units (1 + 2) when the price falls by $1. So, choice B is the correct answer.

Table 4-1 -Refer to Table 4-1. If the Market Consists of Michelle