Aphrodite's manufactures and markets scents, which can be added to enhance plain bath oil or potpourri, used to cover unpleasant odors, or used in candle-making. Last year, sales were disappointing. The manufacturer decided to increase the price of each bottle of scent by approximately 25 percent. This increase in price resulted in a 20 percent increase in bottles sold. Aphrodite's apparently experienced:

Question

Quizplus · Accepted Answer

Aphrodite's experienced inverse demand, where increasing the price of their scents led to an increase in the quantity sold. This is contrary to the typical demand curve where an increase in price leads to a decrease in quantity demanded.

Aphrodite's Manufactures and Markets Scents, Which Can Be Added to Enhance