Your boss would like your help on a marketing research project he is conducting on the relationship between the price of soda and the quantity of soda demanded. He hands you the following document: Price of Soda (Dollars per can) 0.50 0.75 1.00 1.25 Quantity of Soda Demanded Billions of cans) 2,000 1,500 1,000 law of demand quantity of soda demanded demand curve demand schedule 750 Your task is to take this and construct a graphic . n doing so, you determine that as the price of soda rises, the quantity of soda demanded decreases. This confirms the

As the price of a good or service increases, the consumers will be less willing to purchase the good or service, therefore the quantity demanded will decrease. When the price of a good or service increases, this results in a higher opportunity cost for the consumer and a lower consumer surplus.

Inversely, when the price of the good or service increases, the suppliers will be more willing to produce the good or service, therefore the quantity supplied will increase.