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You observe the price of a good rises and the quantity sold decreases. This is the result of

User Faysal
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Answer:

This is the result of law of demand and elasticity of demand

Step-by-step explanation:

The law of demand states that, other things remaining equal, the higher the price of a commodity, the lower the quantity demand of that commodity. Also, the observed goods in the question is a normal good because all normal goods obey the law of demand.

In addition, the price elasticity of demand is ELASTIC. This means the good is sensitive to price. A 1% increase in price will lead to a significant decrease in quantity demanded.

Also the income elasticity of demand is negative, meaning an increase income means the quantity demanded will decrease. This usually happens for inferior goods.

All these three points can cause it

User Ssice
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