Figure 5-3
-Suppose that the market price rises from $3 to $5.What is the change in market demand?

Question

Figure 5-3 
-Suppose that the market price rises from $3 to $5.What is the change in market demand?

Quizplus · Accepted Answer

The change in market demand is the difference between the quantity demanded at the new price and the quantity demanded at the old price. At the old price of $3, the quantity demanded is 100 units. At the new price of $5, the quantity demanded is 70 units. Therefore, the change in market demand is 70 - 100 = -30 units.

Figure 5-3 -Suppose That the Market Price Rises from $3 to $5.What