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Which statement best explains why money was invented?
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1. Introduction to Microeconomics
Introduction to Economics
Scelta multipla
If Pepsi goes on sale and its price decreases, what is the most likely effect on the quantity demanded of Pepsi, assuming all other factors remain constant?
A
The quantity demanded of Pepsi will become zero.
B
The quantity demanded of Pepsi will remain unchanged.
C
The quantity demanded of Pepsi will increase.
D
The quantity demanded of Pepsi will decrease.
Guida verificata passo dopo passo1
Step 1: Understand the Law of Demand, which states that, ceteris paribus (all other factors held constant), when the price of a good decreases, the quantity demanded of that good typically increases.
Step 2: Identify the good in question, which is Pepsi, and note that its price is decreasing due to a sale.
Step 3: Apply the Law of Demand to Pepsi: since the price of Pepsi falls, consumers are more likely to buy more of it, increasing the quantity demanded.
Step 4: Recognize that the quantity demanded changes along the demand curve in response to price changes, rather than shifting the demand curve itself.
Step 5: Conclude that the most likely effect of a price decrease for Pepsi, assuming all other factors remain constant, is an increase in the quantity demanded of Pepsi.
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