In an attempt to raise sales, Hannah cut prices in her bookstore by 20 percent.If the dollar value of her sales remained constant, that indicates
A)old customers bought no more books.
B)no new customers bought books.
C)the quantity of books sold increased 20 percent.
D)the demand curve is vertical.

Question

Quizplus · Accepted Answer

If the dollar value of sales remained constant after a 20 percent price cut, it means the quantity of books sold must have increased to offset the lower price per book. This does not necessarily speak to the behavior of old or new customers specifically, nor does it imply a vertical demand curve.

In an Attempt to Raise Sales, Hannah Cut Prices in Her