Suppose Apple raises the cost of downloading a song from iTunes from $0.99 per song to $1.49 per song.This price increase will cause a(n)________.

Question

Quizplus · Accepted Answer

Price increase leads to a decrease in quantity demanded, as consumers are less willing and able to pay the higher price for the same product. It is unlikely that the increase in price will lead to an increase in demand, as it would make the product less attractive to buyers.

Suppose Apple Raises the Cost of Downloading a Song from ITunes