The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1

-Which of the following will cause an increase in the quantity demanded of ice cream at an ice cream store?
A)The onset of summer brings about an increase in the temperature.
B)The price of frozen yogurt that is sold at the store is reduced by 5 percent.
C)A new ice cream flavor is introduced at the store.
D)The store introduces a limited period offer of 20 percent off on the price of ice cream.
E)The income of the store's consumers increases.

Question

The table given below reports the quantity demanded of a good by individuals 1, 2, and 3 at different prices.Table 3.1
 
-Which of the following will cause an increase in the quantity demanded of ice cream at an ice cream store?
A)The onset of summer brings about an increase in the temperature. 
B)The price of frozen yogurt that is sold at the store is reduced by 5 percent. 
C)A new ice cream flavor is introduced at the store. 
D)The store introduces a limited period offer of 20 percent off on the price of ice cream. 
E)The income of the store's consumers increases.

Quizplus · Accepted Answer

A reduction in the price of ice cream due to a limited period offer directly increases the quantity demanded according to the law of demand, as consumers are more willing to buy the product at a lower price.

The Table Given Below Reports the Quantity Demanded of a Good