Table 4-1
The table shows individual demand schedules for a market.

-Refer to Table 4-1. What happens if the price increases from $1.00 to $1.50?

Question

Table 4-1
The table shows individual demand schedules for a market.
 
-Refer to Table 4-1. What happens if the price increases from $1.00 to $1.50?

Quizplus · Accepted Answer

According to the table, at a price of $1.00, the total market demand is 35 units. If the price increases to $1.50, the quantity demanded by each individual decreases, resulting in a total decrease of 7 units in the market demand (15+10+5+3+2+1-7=29). Therefore, the correct answer is D - the quantity demanded in the market decreases by 7 units.

Table 4-1 The Table Shows Individual Demand Schedules for a Market