At a Price of $15 Each,Marta Buys 4 Books Per

question 82

Multiple Choice

At a price of $15 each,Marta buys 4 books per month.When the price increases to $20,Marta buys 3 books per month.Luz says that Marta's demand for books has decreased.Is Luz correct?

• A) Yes,Luz is correct.
• B) No,Luz is incorrect.Marta's demand has increased.
• C) No,Luz is incorrect.Marta's quantity demanded has decreased,but her demand has stayed the same.
• D) No,Luz is incorrect.Marta's quantity demanded has increased,but her demand has stayed the same.
• E) No,Luz is incorrect.Marta's quantity demanded has decreased and her demand has increased.

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Definitions:

Expansion Opportunities

Opportunities for a business to grow, either through entering new markets, increasing product lines, or acquiring other businesses.

Sole Proprietor

An individual who owns and operates a business alone, bearing sole responsibility for its operations and liabilities.

Dissolve

To disperse or disappear into a solution, or in a corporate context, to legally terminate a company.

Domestic Corporation

A corporation that is registered and operates within its country of incorporation.