Question

Which of the following examples demonstrates the law of demand?A) Mary buys fewer Milky Ways at $0.80 per Milky Way after the price of Snickers falls to $0.70 per Snicker.B) After Mark got a raise at work, he bought more cookies at $2.50 per cookie than he did before his raise.C) Kelvin buys more donuts at $0.80 per donut than at $0.95 per donut, other things equal.D) Amy buys fewer muffins at $2.00 per muffin than at $3.50 per muffin, other things equal.

Answer 1

Answer:

The correct answer is letter "C": Kelvin buys more donuts at $0.80 per donut than at $0.95 per donut, other things equal.

Explanation:

The demand law states that if the price of a good or service decreases, the quantity demanded for that good or service will increase. On the other hand, if the price of a god or service increases, the quantity demanded will decrease. The price-quantity demanded of the demand law is inversely proportional, ceteris paribus.

Thus, Kelvin's case is an example of the demand law since he purchases more donuts when the price is lower ($0.80) and purchases fewer donuts when the price is higher ($0.95).