ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What would happen to the overall demand for tennis balls if the price of tennis rackets went down?
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Increase
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Decrease
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Not effected
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None of the above
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Explanation:
Detailed explanation-1: -the demand for tennis balls to decrease. If the price of tennis racket were to increase, for the Law of Demand, the quantity demanded of tennis rackets will decline, and consequently the demand for tennis balls will decline as well.
Detailed explanation-2: -So, for a fall in the price of the tennis rackets, the purchasing power of the consumer increases, and the demand for the tennis balls will rise due to the law of demand.
Detailed explanation-3: -The correct option is d. A decrease in average household income when tennis balls are a normal good.
There is 1 question to complete.