Scenario 4.2:
Suppose that the demand for artichokes (Qa) is given as:
Qa = 200 - 4P
-Use the information in Scenario 4.2. Suppose that the price of artichokes is increased slightly from $10. The total expenditure by consumers on artichokes will ________ and the number of artichokes sold will ________.

Question

Quizplus · Accepted Answer

When the price of artichokes is increased, the quantity demanded will decrease, as per the inverse relationship between price and quantity demanded. Using the demand equation Qa = 200 - 4P, if the price increases from $10, the new price (P) will be $11. Calculation shows that the new quantity demanded (Qa) will be:
Qa = 200 - 4(11)
Qa = 148
The original quantity demanded (Qa) when P = $10 was:
Qa = 200 - 4(10)
Qa = 160
Therefore, the number of artichokes sold will fall from 160 to 148, and the total expenditure by consumers will increase due to the higher price, resulting in a rise in total expenditure. Therefore, the correct answer is B.

Scenario 4.2: Suppose That the Demand for Artichokes (Qa) Is Given As