Question

If the price of pepsi increases, then there will be ________ of pepsi.

a.an increase in the supply
b.an increase in the quantity supplied
c.a decrease in the quantity supplied
d.a decrease in the supply

Answer 1

If the price of Pepsi increases, then there will be an decrease in the quantity demanded of Pepsi. When the amount of purchasing Pepsi rises, there is a decline in demand because they are trying to offset the new cost of the Pepsi by purchasing less. When items that aren't a need rise, the demand drops to reflect how pricing does affect certain goods and services.