Asked by Gabriella Gonzales on Apr 25, 2024
Verified
Which statement illustrates the law of demand?
A) An increase in tuition encourages more students to enroll in college because the quality of education has risen.
B) Consumers buy more personal computers because prices have fallen.
C) Oil companies drill for new sources because prices are higher.
D) Fewer people play golf because incomes are lower.
Demand Curve
A graph showing the quantity of a good that consumers are willing and able to purchase at various prices.
Quantity Demanded
The total amount of a good or service that consumers are willing and able to purchase at a specific price.
- Gain an insight into the principle of demand and the impact of pricing on the demand quantity.
Verified Answer
AG
Abhinav Gupta6 days ago
Final Answer :
B
Explanation :
The law of demand states that as the price of a good or service increases, the quantity demanded by consumers will decrease, and as the price of a good or service decreases, the quantity demanded by consumers will increase. Option B illustrates this by showing that as the prices of personal computers have fallen, consumers are buying more of them, indicating that the quantity demanded has increased.
Learning Objectives
- Gain an insight into the principle of demand and the impact of pricing on the demand quantity.