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Question
last week, a group of high school students washed cars for $5 per car. this week, they raised the price to $10 per car. what will probably happen to the quantity of car washes demanded?
it will probably go up. it will probably go down.
According to the law of demand in economics, when the price of a good or service (here, car wash service) increases (from $5 to $10 per car) while other factors remain constant, the quantity demanded of that good or service typically decreases. This is because consumers are generally less willing or able to buy the service at a higher price.
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It will probably go down.