Refer to the accompanying figures. If Mallory and Rick are the only two consumers in this market and the price of soda increases from $0.75 to $1.00 per can, the quantity of soda demanded in the market will ________ by ________ cans per month.
A)decrease; 20
B)increase; 20
C)decrease; 40
D)increase; 40

Question

Refer to the accompanying figures. If Mallory and Rick are the only two consumers in this market and the price of soda increases from $0.75 to $1.00 per can, the quantity of soda demanded in the market will ________ by ________ cans per month. 
A)decrease; 20 
B)increase; 20 
C)decrease; 40 
D)increase; 40

Quizplus · Accepted Answer

When the price of soda is $0.75 per can, the quantity of soda demanded in the market is 50 cans per month (30 by Mallory and 20 by Rick), and when the price of soda is $1.00 per can, the quantity of soda demanded in the market is 10 cans per month (10 by Mallory and 0 by Rick). So, when the price of a can of soda increases from $0.75 to $1.00, the market quantity of soda demanded decreases by 40 cans per month.

Refer to the Accompanying Figures