Owen saw that the price of peaches had gone down, and so he decided to buy more peaches.

Based on this information only, what does Owen's reaction reflect?
Choose 1 answer:
(A) Owen's demand for peaches has increased.
(B) Owen's quantity demanded for peaches has increased.
(c) Owen has experienced an increase in income.
(D) Owen observed that there has been an increase in the price of other fruit, a substitute for peaches.
(E) Owen expects future price changes.

Question

Owen saw that the price of peaches had gone down, and so he decided to buy more peaches.

Based on this information only, what does Owen's reaction reflect?
Choose 1 answer:
(A) Owen's demand for peaches has increased.
(B) Owen's quantity demanded for peaches has increased.
(c) Owen has experienced an increase in income.
(D) Owen observed that there has been an increase in the price of other fruit, a substitute for peaches.
(E) Owen expects future price changes.

Accepted Answer

***B*** ∻Key Concept∻ ⚹Quantity Demanded vs. Demand⚹ ∻Explanation∻ ⚹Owen's decision to buy more peaches in response to a price decrease reflects an increase in the quantity demanded, not an increase in demand. Demand refers to the entire relationship between price and the quantity consumers are willing to purchase, while quantity demanded is the specific amount consumers are willing to buy at a particular price. A movement along the demand curve due to a change in price indicates a change in quantity demanded.⚹◊How would a decrease in the price of peaches affect the market demand curve for peaches in the short run?⍭ Generate me a similar question◊

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