Question
If a 10% decrease in the price of one product that you buy causes an 8% increase in quantity demandedof that product, will another 10% decrease in the price cause another 8% increase (no more and no less) in quantity demanded?
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Marginal utility is the additional satisfaction a consumer gains from consuming one more unit of a good or service. Show more…
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If a $10 \%$ decrease in the price of one product that you buy causes an $8 \%$ increase in quantity demanded of that product, will another $10 \%$ decrease in the price cause another $8 \%$ increase (no more and no less) in quantity demanded?
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