Question

The largest national herbal supplement store is running a sale on its excess supply of Vitamin C supplements. With this new price change what do you think will happen to the Vitamin C supplement market

Answer 1

There will be an increase only in the quantity demanded.

Step-by-step explanation:

Here are the options to this question :

There will be a shift if the demand curve as demand increases.

There will be a decrease in the quantity demanded.

There will be an increase only in the quantity demanded.

A sale reduces the price of a good. All things been equal, a price reduction increases the quantity demanded of a product. This is in line with the law of demand.

According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

An increase in demand leads to a downward movement along the demand curve and not a shift of the demand curve.