Suppose there are three consumers in the market for chocolate bars: Don, John, and Ron.At a price of $2 per bar, the quantities demanded by each are 3, 2, and 1, respectively.At a price of $1.50 per bar, the quantities demanded by each are 4, 5, and 3, respectively.Which of the following reflects what will happen in this market?

Question

Quizplus · Accepted Answer

This is because the total quantity demanded in the market will increase from 6 to 12, resulting in an increase of 6. This is in line with the law of demand, which states that as the price of a good decreases, the quantity demanded will increase. Choice A is incorrect because the given information shows that the law of demand is followed. Choice C is incorrect because there is no information provided that indicates John's demand curve will shift the most. Choice D is incorrect because it is the opposite of what the law of demand would predict.

Suppose There Are Three Consumers in the Market for Chocolate