Table 4-3
-Refer to Table 4-3. If these are the only four buyers in the market, then when the price increases from $1.00 to $1.50, the market quantity demanded
A)decreases by 1.75 units.
B)increases by 2 units.
C)decreases by 7 units.
D)decreases by 24 units.

Question

Table 4-3 
-Refer to Table 4-3. If these are the only four buyers in the market, then when the price increases from $1.00 to $1.50, the market quantity demanded
A)decreases by 1.75 units. 
B)increases by 2 units. 
C)decreases by 7 units. 
D)decreases by 24 units.

Quizplus · Accepted Answer

When the price increases from $1.00 to $1.50, the quantity demanded decreases for each buyer. The total decrease in quantity demanded across all four buyers is 1+2+3+1 units, which is 7 units. Therefore, the correct answer is C.

Table 4-3 -Refer to Table 4-3. If These Are the Only Four