The Book Nook reduces prices by 20%. If the dollar value of The Book Nook's sales remain constant, it indicates that:
A)the quantity of books sold remains constant.
B)the demand curve is horizontal.
C)the demand curve is vertical.
D)the quantity of books sold increases by 20%.

Question

The Book Nook reduces prices by 20%. If the dollar value of The Book Nook's sales remain constant, it indicates that:
A)​the quantity of books sold remains constant.
B)​the demand curve is horizontal.
C)​the demand curve is vertical.
D)​the quantity of books sold increases by 20%.

Quizplus · Accepted Answer

If the price is reduced by 20% and the total sales value remains constant, it means that the quantity sold must have increased by 20% to offset the price reduction.

The Book Nook Reduces Prices by 20