Question

Your boss would like your help on a marketing research project she is conducting on the relationship between the price of juice and the quantity of juice demanded. She hands you the following document: Price of Juice Quantity of Juice Demanded (Dollars per can) (Billions of cans) 0.50 2,000 0.75 1,500 1.00 1,000 1.25 750 Your task is to take this and construct a graphical representation of the data. In doing so, you determine that as the price of juice rises, the quantity of juice demanded decreases. This confirms the:_________

Answer 1

Answer: The law of demand

Explanation:

The tabular representation (demand schedule is down below)

Price of Juice (Dollars per can)     Quantity Demanded(Billions of can)

2000                                                   0.5

1500                                                   0.75

1000                                                     1

750                                                      1.25

From the table above and the graphical representation attached, the law of demand is confirmed. The law of demand states that the price of a good and the quantity demanded are inversely proportional.

Notice that when the price of the juice increases, the demand decreases and when the price decreases, the demanded increases. This shows that majority of consumers will be more willing to make purchases when there is a decrease in price.

Check the attachment for the graphical representation.

Download xlsx