Consider the demand for soap shown in Figure 1 above. How much soap will consumers purchase if the price of a pound of soap is $6?      A) 210 pounds       B) 248 pounds       C) 286 pounds       D) 305 pounds

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Consider the demand for soap shown in Figure 1 above. How much soap will consumers purchase if the price of a pound of soap is $6? 
 
 
A) 210 pounds
 
 
 
B) 248 pounds
 
 
 
C) 286 pounds
 
 
 
D) 305 pounds
 
$10
$8
$6
$5
D
210
248
286
305
QD
Transcribed Image Text:$10 $8 $6 $5 D 210 248 286 305 QD
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The quantity demanded of a product like soap is negatively associated with the price of own product. This is because a higher price hurts the consumer budget which motivates a typical buyer to move from the given consumer product to its available substitutes.

 

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