Proteus USA Inc. sells gift food basket components. It carries a full line of gourmet foods, but finds its cheese and nut selection to be its best seller. Proteus USA has been in business for 11 years. For the first time in the company's history its sales were down in all categories in 1999. The next year Proteus USA increased the price of its cheese and nut selections by 20 percent to offset any continued downturn in the market. Sales of these items almost doubled what they had been in 1999. Proteus USA experienced:

Question

Quizplus · Accepted Answer

Proteus USA experienced inverse demand, where increasing the price of its cheese and nut selections led to an increase in sales, contrary to what might be expected in typical demand scenarios where increasing prices usually lead to a decrease in demand.