Question

Suppose a special discount makes the price of Nike air max shoes 10% lower. As result, there is a 20% increase in the quantity demanded for the shoes, which statement is correct ____?

Answer 1

It is evident from the problem statement that an overall price reduction of Nike air max shoes will lead to an increase in the demand for the shoe.

In Economics,  the relationship between price and demand is stated as follows "If all other factors remain equal, the higher the price of a good, the fewer people will demand that good. In other words, the higher the price, the lower the quantity demanded and vice versa."

In all, the Law of Demand tells us that if more people want to buy something, given a limited supply, the price of that thing will be bid higher, also of the price of something is low the demand will be high.

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