Sarah owns a candle shop. She had been charging $5 for each scented jar candle. At this price her customers bought an average of 421 jars each week. For the last few weeks, she has reduced her price to $3.95 per candle, and her customers have purchased an average of 695 jar candles each week. These results are consistent with the economic concept of demand.

Question

Quizplus · Accepted Answer

Generally speaking, the quantity demanded tends to rise when the price of a good falls.

Sarah Owns a Candle Shop