Asked by Becca Moore on Jun 29, 2024
Verified
When the price of a good increases and the quantity demanded decreases,this demonstrates:
A) efficiency
B) the law of demand
C) the supply schedule
D) the production possibilities frontier
Law of Demand
The law of demand states that, all else being equal, as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa.
Quantity Demanded
The complete volume of a particular good or service that purchasers are both eager and financially able to acquire at a certain price within a market.
Price Increases
Situations where the cost of goods or services rise, often reflecting inflation or increased production costs.
- Gain insight into the law of demand and how it influences market operations.
Verified Answer
RJ
Ryan James BayerJul 01, 2024
Final Answer :
B
Explanation :
This situation demonstrates the law of demand, which states that as the price of a good increases, the quantity demanded decreases. This is a fundamental principle in economics and is one of the most basic and widely accepted laws in the field. It is important for understanding consumer behavior and the workings of markets.
Learning Objectives
- Gain insight into the law of demand and how it influences market operations.