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Question

suppose that at this point, producers raised the price by 5%. what would happen to quantity demanded as a result?

Answer

Assuming all other factors remain the same, if producers increase the price by 5%, the amount of the product consumers are willing to purchase is likely to decrease. This particular relationship between price and quantity demanded is commonly known as the law of demand. The extent to which the quantity demanded declines when the price increases depends on the price elasticity of demand for that specific product or service. In the case that the demand for the product or service is highly elastic, meaning that consumers are particularly sensitive to price adjustments, then a 5% increase in price is likely to lead to a more than proportional decrease in the amount of the product demanded. However, if the demand is relatively inelastic, meaning that consumers are not particularly sensitive to price adjustments, then a 5% increase in price is likely to result in a relatively small decrease in the amount of the product demanded. In general, the relationship between price and quantity demanded is shown on the demand curve, which displays the amount of a product or service that consumers are able and willing to purchase at various prices. An increase in price results in a downward shift on the demand curve, which causes a decrease in the amount demanded. Further information about the law of demand is available at brainly.com/question/10782448 #SPJ4.