Scenario: A market researcher asks three consumers, A, B, and C, about their willingness to pay for different quantities of a 20-ounce bottle of Lemon-Lime Gatorade. She collects the following information.

-Refer to the scenario above.What is the change in the quantity demanded in the market if the price of Gatorade falls from $4 per 20-ounce bottle to $3 per 20-ounce bottle?

Question

Scenario: A market researcher asks three consumers, A, B, and C, about their willingness to pay for different quantities of a 20-ounce bottle of Lemon-Lime Gatorade. She collects the following information.
 
-Refer to the scenario above.What is the change in the quantity demanded in the market if the price of Gatorade falls from $4 per 20-ounce bottle to $3 per 20-ounce bottle?

Quizplus · Accepted Answer

The change in quantity demanded is determined by the consumer's response to a price change. A decrease in price typically leads to an increase in quantity demanded due to the law of demand. The specific increase (e.g., 4 bottles) would depend on the demand curve for the product, which is not detailed here, but assuming D is the correct answer implies a significant responsiveness of consumers to the price decrease.

Scenario: a Market Researcher Asks Three Consumers, A, B, and C