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ToyTown, a soft toy manufacturer, produces what it claims to be the cheapest teddy bears...

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ToyTown, a soft toy manufacturer, produces what it claims to be the cheapest teddy bears on the market. The graph shows the current price of a ToyTown teddy bear and its relationship to the demand for ToyTown teddy

bears.

If the price of ToyTown teddy bears were to increase, what would happen to the demand?

A.

Demand would fall as consumers would look for alternative teddy bears to buy

B.

Demand would increase because the teddy bears would be seen as more prestigious by consumers due to their higher prices

C.

Demand would fall as the relationship between price and demand as shown in the graph is inelastic

D.

Demand would increase as the relationship between price and demand as shown in the graph is elastic

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