Final answer:
No, another 10% decrease in price will not necessarily cause another 8% increase in quantity demanded.
Step-by-step explanation:
No, another 10% decrease in the price will not necessarily cause another 8% increase in the quantity demanded. The relationship between price and quantity demanded is governed by the concept of price elasticity of demand. Price elasticity of demand measures the responsiveness of quantity demanded to a change in price.
If the price elasticity of demand is constant, a 10% decrease in price will always result in an 8% increase in quantity demanded. However, in reality, price elasticity of demand varies for different products and different consumer preferences. Therefore, it is not safe to assume that a second 10% decrease in price will always result in another 8% increase in quantity demanded.
To accurately determine the effect of a price change on quantity demanded, it is necessary to analyze the price elasticity of demand for a specific product and consider other factors that may influence consumer behavior.