Question

The price of ice cream increases. In 1 or 2 sentences, explain how and why this affects the quantity of ice cream cones demanded by consumers

Answer 1

A price increase may discourage customers from buying ice cream, or may choose a free cup over a cone.

Answer 2

This is influenced by raw materials and demand

Step-by-step explanation:

The production of ice-cream is likely to be influenced by two main features:

1. the cost of raw materials or ingredients.

The cost of the ingredients influences the cost of production of the ice cream. If the price of the ingredients increases, the ice cream making company is likely to increase the price of the ice cream to cover the expenses of the increased price of ingredients.

2. demand in the ice cream - this is when the demand exceeds the supply of ice cream. In this way, the company might take advantage of the trend to increase the price and make more profits.