Question

Louie discovered that when he dropped the price of his paintings, more people were interested in buying. Louie is experiencing ________. A. mercantilism B. market price variations C. the law of supply D. the law of demand

Answer 1

Answer:

. the law of demand

Explanation:

The law of demand proclaims that the demand for a product or service is indirectly related to its price. Demand is the quantity of a product that buyers are willing to purchase at a specific price over a period. Should the price of the goods or service increase, its demand decline. A reduction in price causes the demand to rise.

Louise is experiencing the law of demand in play. A drop in price is causing the demand to increase. More customers are finding the reduced price as a good value for their money. The group of customers who could not previously afford the painting can now buy them.