Jill owns a bakery that specializes in cheesecakes.Until recently,Jill charged a price of $12 for each cheesecake.At this price Jill's customers bought an average of 84 cheesecakes each week.For the last few weeks,she has reduced her price to $10.50 per cheesecake,and her customers have purchased an average of 96 cheesecakes each week.These results are consistent with the economic concept of demand.
Level of Learning 3: Application of principles

Question

Quizplus · Accepted Answer

The scenario demonstrates the law of demand, which states that as the price of a good or service decreases, the quantity demanded increases (and vice versa). By lowering the price from $12 to $10.50, Jill was able to increase the quantity of cheesecakes sold from 84 per week to 96 per week. This is a practical application of the economic principle of demand. Therefore, the answer is true (option A).

Jill Owns a Bakery That Specializes in Cheesecakes