Question

Holding all else​ equal, if the price of a digital camera​ rises, then we can expect A. a decrease in the demand for digital cameras. B. an increase in the quantity demanded of digital cameras. C. a decrease in the quantity demanded of digital cameras. D. an increase in the demand for digital cameras.

Answer 1

Answer:

C. a decrease in the quantity demanded of digital cameras.

Explanation:

In economics, the law of demand and supply states that when the price of a commodity increases, the demanded quantity of that commodity decreases and the supply increases.

Both curve for demand and supply meets at a point on the graph where the price of demand and supply is equal. This is called the equilibrium point.

So, when the price of digital cameras increases, the quantity demanded by retailers decreases to meet their budget.