Ask Question
24 January, 07:14

Assume you initially sold wrist watches at $75 per watch. At that price, consumers purchased 10 watches per week. You decide to drop the price to $50 per watch. As a result, consumers purchase 35 watches per week. Is this an increase in demand? Explain why or why not.

+3
Answers (1)
  1. 24 January, 08:58
    0
    Yes, this is an increase in demand

    Explanation:

    Demand increased from 10 watches per week to 35 watches per week.

    This is an increase in demand and it was induced by the drop in price from $75 to $50.

    Consumers tend to buy more at lower price and tend to reduce their demand at higher price. This is the law demand.

    Higher price reduces consumers' purchasing power.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Assume you initially sold wrist watches at $75 per watch. At that price, consumers purchased 10 watches per week. You decide to drop the ...” 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