Question

When the price of a vacation trip the Isle of Skye in Scotland is $7,000 the quantity demanded is 100 trips. If the price is raised to $7,200 the quantity demanded is 60 trips.

Answer 1

The price of a vacation trip is inversely proportionate to the demand of trip.

Step-by-step explanation:

The price of a vacation trip is inversely proportionate to the demand of trip.

The price of a vacation was $7,000 and the quantity demanded was 100 trips but as soon as the price is increased from $7,000 to $7,200 the quantity demanded for the trip decreases from 100 to 60 trips this negative impact of increased price over demanded trips shows the inverse relation between the both.