Question

The price of ice cream increases. In 1 or 2 sentences, explain how and why this affects the quantity of ice cream cones demanded by consumers.

Answer 1

The demand will most likely go down. People are less willing to purchase ice cream when the price is increased.

Answer 2

The correct answer is: "the quantity demanded decreases"

A demand function represents the quantity of a certain good or service that consumers are willing to purchase at different price levels. The law of demand states that there is an inverse relationship between price and quantity demanded (ceteris paribus, hence, if the rest remains equal).Therefore, when the market price increases, the amount that consumers are willing to purchase decreases.