Deena operates a coffee shop located near the university campus. Recently, Deena decided to raise the price of all the products she sells. According to the law of demand, Deena can expect:
A) sales to decrease.
B) sales to increase.
C) to incur an operating loss.
D) to incur an operating profit.

Question

Quizplus · Accepted Answer

According to the law of demand, when prices increase, the quantity demanded typically decreases, assuming all other factors remain constant. Therefore, Deena can expect sales to decrease.

Deena Operates a Coffee Shop Located near the University Campus