Question

Consider the markets for ball-point pens and "rollerball" pens. Suppose that, due to an increased cost of the metal that is used in "rollerball" pens, the prices of "rollerball" pens increase. There are no other changes. What would happen to the demand schedules of both products? The demand curve for ball-point pens would ______________ ; the demand curve for "rollerball" pens would ______________.a. Increase; not change
b. Increase; increase
C. Decrease; not change
D. Decrease; increase
E. Not change; decrease

Answer 1

Answer:

option C.

Explanation:

The correct answer is option C.

demand curve is the curve that shows the demand for the commodity with the change in the price of the commodity.

In the question, the price of the metal used in the rollerball pen is increased this increase in the price of the metal will decrease the demand curve for the ballpoint pens.

And the demand curve for the rollerball pen would not change.