If the price of pencils went from $2 a box to $10 a box, what will happen to the demand based on change in price?
the demand will go down
the demand will increase
the demand will equal supply

If the price of pencils went from $2 a box to $10 a box, the demand will go down.

According to the theory of supply and demand, the increase in the price of a product causes the demand for it to fall because it is no longer accessible to consumers. It goes from being a current product to a luxury product, due to the increase in its value. Therefore, only a segment of the population can afford the expense of acquiring them, causing the demand to decrease.