Question

If the quantity of product x demanded decreases from 16,000 to 10,000 units, then it suggests that the price of x was?

1) Decreased
2) Increased
3) Remained the same
4) Cannot be determined

Answer 1

The decrease in the quantity demanded suggests that the price of product x increased.

Step-by-step explanation:

A decrease in the quantity demanded from 16,000 to 10,000 units suggests that the price of product x increased.

When the price of a product increases, the quantity demanded typically decreases due to the law of demand. This means that consumers are less willing to purchase the product at a higher price.

In this case, the decrease in quantity demanded indicates that the price of product x increased, as there would be a decrease in demand if the price decreased.