Table 7-1

Refer to Table 7-1. If the price increases from $1.00 to $1.50,
A) the market demand decreases by 20 units.
B) individual demand curves, when drawn, will shift to the left.
C) the quantity demanded in the market decreases by 2 units.
D) the quantity demanded in the market decreases by 7 units.

Question

Table 7-1

Refer to Table 7-1. If the price increases from $1.00 to $1.50,
A) the market demand decreases by 20 units. 
B) individual demand curves, when drawn, will shift to the left. 
C) the quantity demanded in the market decreases by 2 units. 
D) the quantity demanded in the market decreases by 7 units.

Quizplus · Accepted Answer

The column for quantity demanded shows that at a price of $1.00, the market demand is 30 units. If the price increases to $1.50, the quantity demanded decreases to 23 units. Therefore, the quantity demanded in the market decreases by 7 units.

Table 7-1 Refer to Table 7-1. If the Price Increases from $1.00