Sarah owns a bakery that specializes in cupcakes. Until recently, she charged a price of $5 for each treat. At this price Sarah's customers bought an average of 384 cupcakes each week. For the last few weeks, she has reduced her price to $3.95 per cake, and her customers have purchased an average of 596 cupcakes each week. These results are consistent with the economic concept of demand.

Question

Quizplus · Accepted Answer

The decrease in price has caused an increase in the quantity demanded, which is consistent with the concept of demand.

Sarah Owns a Bakery That Specializes in Cupcakes