Ask Question
1 March, 21:37

At a price of $15 each, Marta buys 4 books per month. When the price increases to $20, Marta buys 3 books per month. Luz says that Marta's demand for books has decreased. Is Luz correct? Question 36 options: Yes, Luz is correct. No, Luz is incorrect. Marta's demand has increased. No, Luz is incorrect. Marta's quantity demanded has decreased, but her demand has stayed the same. No, Luz is incorrect. Marta's quantity demanded has increased, but her demand has stayed the same. No, Luz is incorrect. Marta's quantity demanded has decreased and her demand has increased.

0
Answers (1)
  1. 1 March, 22:49
    0
    No, Luz is incorrect. Marta's quantity demanded has decreased, but her demand has stayed the same.

    Explanation:

    For $15 per book, the quantity demanded was 4 books per month.

    When the price increases to $20 per book, the quantity demanded fell to 3 books per month.

    This shows a decrease in the quantity demanded. A change in demand occurs when the price is constant and quantity demanded changes because of change in other factors. But here the other factors are constant and the quantity demanded is changing due to a change in price.

    So, Luz's statement here is incorrect.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “At a price of $15 each, Marta buys 4 books per month. When the price increases to $20, Marta buys 3 books per month. Luz says that Marta's ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers