Question

If 50 units of a good are demanded at a price of $1 per unit, what will be the impact on quantity demanded following a reduction in price?

Answer 1

According to the law of demand, a decrease in price will lead to an increase in quantity demanded. However, the exact impact on quantity demanded depends on the elasticity of demand.

Step-by-step explanation:

According to the law of demand, when the price of a good decreases, the quantity demanded of that good increases. In this case, if the price of the good decreases from $1 to a lower price, the quantity demanded will increase. However, the exact impact on quantity demanded cannot be determined without specific information about the relationship between price and quantity demanded, such as the elasticity of demand.