Question

When the price of flour was $10 per unit, total spending on flour was $100,000 per day. When the price of flour fell to $8 per unit, total spending rose to $125,000 per day. In this price range, the demand for flour is:

Answer 1

Answer:

Answer is demand increased.

Refer below for explanation.

Explanation:

When the demand of the particular thing is more the price eventually increases as its directly proportional, whereas the demand of flour decreases the price eventually decreases. That is demand increased.

Answer 2

Answer: demand increased

Explanation: Increased prices tends to result in lower demand, and demand increases generally lead to increased supply. However, a decrease in price results to increase in demand. supply of different products responds to demand differently, with some products' demand being more sensitive to prices than others. In this case at $10, $100,00 worth of flour was sold, a decrease in price to $8 saw an increase in demand with about 15,625 worth of product sold compared to 10,000 when at $ 10 that's an increase of 5,625 in demand.