Question

At a price of $9.99, Danielle buys 3 digital books per month. When the price decreases to $7.99, Danielle buys 4 digital books per month. Jason says that Danielle's demand for digital books has increased. Is Jason correct? a. Yes, Jason is correct. b. No, Jason is incorrect. Danielle's demand has decreased. c. No, Jason is incorrect. Danielle's quantity demanded has decreased, but her demand has stayed the same. d. No, Jason is incorrect. Danielle's quantity demanded has increased, but her demand has stayed the same. e. No, Jason is incorrect. Danielle's quantity demanded has increased and her demand has decreased

Answer 1

Answer:

The correct answer D

Explanation:

When the price of the product is $9,99, then the customer bought 3 books per month. But when the price decreases from $9.99 to $7.99, then the customer bought 4 books per month. Because when the price of the product decreases, the quantity demanded for the product increases for the while and when the prices increases, the quantity demanded decreases, it is not constant.

Therefore, Jason is in correct as the demand for the product has not increases, but only the quantity demanded has increased.