At a price of $5, Sam buys 10 units of a product; when the price increases to $6, Sam buys 8 units. Martha says Sam's demand has decreased. Is Martha correct?

Question

Quizplus · Accepted Answer

Martha is incorrect in saying that Sam's demand has decreased because demand refers to the willingness and ability of a consumer to purchase a product at various prices over a specific period of time. In this case, only the price has changed, not the period of time. Sam's quantity demanded has decreased, but his demand (overall willingness and ability to purchase the product) has remained the same.

At a Price of $5, Sam Buys 10 Units of a Product;