Question

Consider the market for caramel and butterscotch ice cream toppings. For each price change, identify the likely effect on the demand curve for caramel topping 1030. Drag each item on the left to its matching item on the right. The demand curve for caramel topping will remain the same. The price of butterscotch topping increases. Current Grade . The demand for caramel topping will decrease 096 tou must answer at leant I more The price of caramel topping decreases. The demand for caramel topping will The price of ice cream increases

Answer 1

With the increase in the price of caramel toppings, the demand for caramel toppings will decrease.

With the increase in the price of butter scotch toppings, the demand for butter scotch toppings will decrease.

Explanation:

There is an inverse relationship between the demand of a good with the price of that good. With the increase in the price of a good, there is a fall in the demand of that good.

Similarly with the decrease in the price of that good, there is decrease in the demand of that good. This is known as the law of demand and because of this reason, the demand curve is downward sloping.