The price of Soccer balls today is $25, and the quantity demanded is 5000. Next year the price rises to $35 and the quantity demanded falls to 3000.
Answers
YOUR QUESTION IS
The price of Soccer balls today is $25, and the quantity demanded is 5000. Next year the price rises to $35 and the quantity demanded falls to 3000.
Then ,
The cost is increased $10
The answer is based on law of demand. Though the question is not complete yet i tried to give the best possible solution.
Explanation:
Law of demand : The law of demand states that other things remain the same, the quantity demanded of a commodity rises when its price falls and quantity demanded falls when its price rises .
In this law of demand you must notice that it is given that other things remain the same. what is other things? They are the other factors that affects the quantity demanded of a commodity such as price of related commodities, income of the consumer, taste and preference of consumer etc.
The question is based on same the same i.e. when the price of soccer rises from $25 to $35 the quantity demanded will fall from 5000 to 3000 units.