Table 4-1
-Refer to Table 4-1. If the market consists of Laura and Hillary 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 Laura and Hillary 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

The quantity demanded increases by the sum of the individual increases in quantity demanded by Laura and Hillary when the price falls by $1. If both increase their demand by 2 units each, the total increase is 4 units.

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