At a price of $9.99 per digital book,Danielle buys 3 digital books per month.When the price decreases to $7.99,Danielle buys 4 digital books per month.Jason says that Danielle's demand for digital books has increased.Is Jason correct?
A) Yes,Jason is correct.
B) No,Jason is incorrect.Danielle's demand has decreased.
C) No,Jason is incorrect.Danielle's quantity demanded has decreased,but her demand has stayed the same.
D) No,Jason is incorrect.Danielle's quantity demanded has increased,but her demand has stayed the same.
E) No,Jason is incorrect.Danielle's quantity demanded has increased and her demand has decreased.

Question

Quizplus · Accepted Answer

Danielle's quantity demanded has increased from 3 to 4 digital books per month due to the decrease in price. However, her demand has stayed the same as the decrease in price did not cause a change in her overall willingness and ability to purchase digital books. Her demand would only increase if there was a change in her preferences or income that caused her to want to buy more digital books at all price points.

At a Price of $9