At a price of $5, Sam buys 10 units of a product. When the price increases to $6, Sam buys eight units. Martha says Sam's demand has decreased. Is Martha correct?

Question

Quizplus · Accepted Answer

Quantity demanded refers to the specific amount of a product that a consumer is willing and able to purchase at a particular price, while demand refers to the entire relationship between prices and the quantity of a product that consumers are willing and able to buy. In this case, Sam's quantity demanded has decreased as the price increased from $5 to $6, but it cannot be concluded that his demand has decreased without more information about his behavior at other prices. Therefore, choice C is the best answer.

At a Price of $5, Sam Buys 10 Units of a Product