If Apple raises the price for a downloaded song at the iTunes store we will see a(n)
A) increase in demand for iPods.
B) decrease in consumers' incomes if downloaded songs are inferior goods.
C) decrease in quantity demanded of downloaded songs.
D) decrease in demand for substitutes for downloaded songs.
E) increase in consumers' incomes if downloaded songs are normal goods.

Question

Quizplus · Accepted Answer

The law of demand states that as the price of a good or service increases, the quantity demanded decreases. Therefore, if Apple raises the price for a downloaded song at the iTunes store, we can expect a decrease in the quantity demanded of downloaded songs. Options A, B, D, and E are not directly related to the price of downloaded songs at the iTunes store.

If Apple Raises the Price for a Downloaded Song at the ITunes