The graph illustrates the demand curve for soft drinks. After a rise in the price of a soft drink from $1.00 a can to $2.00 a can, the quantity of soft drinks demanded

Question

Quizplus · Accepted Answer

According to the law of demand, as the price of a good increases, the quantity demanded decreases. Therefore, a rise in the price of a soft drink from $1.00 a can to $2.00 a can will lead to a decrease in the quantity of soft drinks demanded. Looking at the graph, at the original price of $1.00 a can, the quantity demanded is 2 cans a day. However, at the new price of $2.00 a can, the quantity demanded is 0 cans a day, indicating a decrease from 2 cans to 0 cans a day. Therefore, the correct answer is D.

The Graph Illustrates the Demand Curve for Soft Drinks