Correctly identify the outcome if the price of burritos in Colemanville drops from $7 to $4.

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Noah Lozano

15 August, 20:27

Correctly identify the outcome if the price of burritos in Colemanville drops from $7 to $4.

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Matteo · Answer 1

D) A quantity of 400 additional burritos will be demanded.

Kyleigh Vargas · Answer 2

The outcome will be forecasted using the prescriptions of the law of demand. If the price of a good decreases, this will have the opposite effect on the quantity demanded by consumers, that will increase. More people would be willing to purchase the product at a lower price

In conclusion the law of demand states how price and quantity will always move in opposite directions. The only exception to the law would occur with Giffen type goods.