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Vlad1618 [11]
3 years ago
11

The price of ice cream increases. In 1 or 2 sentences, explain how and why this affects the quantity of ice cream cones demanded

by consumers.
Business
2 answers:
Delicious77 [7]3 years ago
6 0

Each consumer has different tastes and preferences, so each has a different utility when consuming a product. This mirrors the price at which each consumer is willing to pay. Some who like ice cream tend to pay a higher price, others do not. That way, if ice cream rises in price, some people who previously demanded ice cream will stop buying. Only consumers who value ice cream will pay a higher price. Therefore, demand is lower after the price increase.

Ivan3 years ago
4 0
As the price of ice cream increases, so the demand by consumers may decrease, decreasing the quantity of ice cream cones demanded (provided that all consumers eat ice cream with a cone!)
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