Multiple Choice
At a price of $5, Sam buys 10 units of a product. When the price increases to $6, Sambuys 8 units. Martha says Sam's demand has decreased. Is Martha correct?
A) Yes, Martha is correct. Sam's demand decreased from 10 to 8 units.
B) No, Martha is incorrect. Sam's demand increased because price increased from $5 to $6.
C) No, Martha is incorrect. The quantity demanded decreased from 10 to 8 units but his demand remains unchanged.
D) No, Martha is incorrect. The quantity supplied to Sam has decreased from 8 units to 10 units but his demand remains unchanged.
E) No, Martha is incorrect. Sam's demand has increased, and his quantity demanded has decreased from 10 units to 8 units.
Correct Answer:
Verified
Correct Answer:
Verified
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