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Yao's Asian Market sells dragon fruit for $3 each. The store usually sells 20 dragon fruits a week. Dragon fruit is in season, and the market could maintain a steady delivery. The produce manager decides to have a sale on dragon fruit and reduces the price to $2 each. Which of these would happen?a. The demand would not keep up with the supply.
b. The supply would not keep up with the demand.
c. The quantity demanded would decrease.
d. The quantity demanded would increase.

Respuesta :

Answer:

Option (d) is correct.

Explanation:

Yao's Asian market sells 20 dragon fruits in a week for $3 each.

If there is a fall in the price of dragon fruit from $3 each to $2 each.

According to the law of demand, there is an inverse relationship between the price of the goods and the quantity demanded.

This indicates that as the price of the commodity falls then as a result the quantity demanded for that commodity increases and if there is a rise in the price of the commodity then as a result the quantity demanded by the consumers decreases.

Therefore, if there is a fall in the price of dragon fruit then as a result the quantity demanded for dragon fruit will increase.

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