If the price is $5 and the quantity demanded is 100 units,then at a price of $10,the quantity demanded will be
A) less than or equal to 100 units.
B) greater than or equal to 100 units.
C) less than or equal to 1000 units.
D) equal to 100 units.

Question

Quizplus · Accepted Answer

This scenario demonstrates the law of demand, which states that as the price of a good/service increases, the quantity demanded decreases. Since the price has doubled from $5 to $10, we can expect that the quantity demanded will decrease. However, we can only be certain that the quantity demanded will be less than or equal to the original demand of 100 units, since we don't have any additional information on how consumers will react to the price increase.

If the Price Is $5 and the Quantity Demanded Is