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A shop owner wants to know what the effect would be of increasing the price on skate boards he sells in his store. When skate boards cost $200, 10 people are willing to buy those skate boards. If the price increases to $300, only 7 people are willing to buy them.

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Answer:

When the price of a single skateboard is increased, the overall demand decreases.

Step-by-step explanation:

A shop owner wants to know what the effect would be of increasing the price on skate boards he sells in his store.

Initially the skateboards were sold for $200 but he decided to increase the price. So he increased the price to $300.

The number of skateboards sold were initially 10 and then decreased to 7 after the price of the skateboards were increased.

Hence we conclude that after the prices were increased, the sale of skateboards decreased.

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