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Angela and Vanessa are two friend who always eat ice cream together. The regular price of ice cream is $1 per spoon. Angela always orders 3 spoons and Vanessa orders 5 spoons. Every Tuesday, the ice cream is 50% off. Angela orders 6 spoons and Vanessa order 7 spoons on Tuesday. Which of the following statement is incorrect? O The total quantity of ice cream demanded by Angela and Vanessa increased by 5 on every Tuesday. O Angela's individual demand curve has a downward sloping. O The promotion on every Tuesday shift out the demand curve. O Vanessa's individual demand curve isn't same as Angela's.

Angela and Vanessa are two friend who always eat ice cream together. The regular price of ice cream is $1 per spoon. Angela always orders 3 spoons and Vanessa orders 5 spoons. Every Tuesday, the ice cream is 50% off. Angela orders 6 spoons and Vanessa order 7 spoons on Tuesday. Which of the following statement is incorrect? O The total quantity of ice cream demanded by Angela and Vanessa increased by 5 on every Tuesday. O Angela's individual demand curve has a downward sloping. O The promotion on every Tuesday shift out the demand curve. O Vanessa's individual demand curve isn't same as Angela's.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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### Ice Cream Demand Analysis **Scenario**: Angela and Vanessa are two friends who always eat ice cream together. The regular price of ice cream is $1 per spoon. Angela always orders 3 spoons, and Vanessa orders 5 spoons. Every Tuesday, the ice cream is 50% off. On Tuesdays, Angela orders 6 spoons, and Vanessa orders 7 spoons. **Question**: Which of the following statement is incorrect? 1. The total quantity of ice cream demanded by Angela and Vanessa increased by 5 on every Tuesday. 2. Angela's individual demand curve has a downward slope. 3. The promotion on every Tuesday shifts out the demand curve. 4. Vanessa's individual demand curve isn’t the same as Angela’s. **Analysis**: - **Total Demand Increase**: On Tuesdays, their combined demand increases due to the discount. Normally, they order 3 + 5 = 8 spoons. With the discount, they order 6 + 7 = 13 spoons. The increase is 13 - 8 = 5 spoons. - **Downward Sloping Demand Curve**: Typically, a demand curve is downward sloping, indicating that as price decreases, the quantity demanded increases. Angela's behavior aligns with this principle since she orders more ice cream when the price is lower. - **Promotion Impact**: A 50% discount is a price decrease, which shifts the demand curve outwards, demonstrating increased demand at lower prices. - **Difference in Demand Curves**: Vanessa orders more ice cream than Angela both before and after the discount, suggesting their demand curves differ. **Conclusion**: Evaluate the given statements based on the above analysis to determine the incorrect statement.
Transcribed Image Text:### Ice Cream Demand Analysis **Scenario**: Angela and Vanessa are two friends who always eat ice cream together. The regular price of ice cream is $1 per spoon. Angela always orders 3 spoons, and Vanessa orders 5 spoons. Every Tuesday, the ice cream is 50% off. On Tuesdays, Angela orders 6 spoons, and Vanessa orders 7 spoons. **Question**: Which of the following statement is incorrect? 1. The total quantity of ice cream demanded by Angela and Vanessa increased by 5 on every Tuesday. 2. Angela's individual demand curve has a downward slope. 3. The promotion on every Tuesday shifts out the demand curve. 4. Vanessa's individual demand curve isn’t the same as Angela’s. **Analysis**: - **Total Demand Increase**: On Tuesdays, their combined demand increases due to the discount. Normally, they order 3 + 5 = 8 spoons. With the discount, they order 6 + 7 = 13 spoons. The increase is 13 - 8 = 5 spoons. - **Downward Sloping Demand Curve**: Typically, a demand curve is downward sloping, indicating that as price decreases, the quantity demanded increases. Angela's behavior aligns with this principle since she orders more ice cream when the price is lower. - **Promotion Impact**: A 50% discount is a price decrease, which shifts the demand curve outwards, demonstrating increased demand at lower prices. - **Difference in Demand Curves**: Vanessa orders more ice cream than Angela both before and after the discount, suggesting their demand curves differ. **Conclusion**: Evaluate the given statements based on the above analysis to determine the incorrect statement.
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