Question

Consider whether the Law of Demand holds in the following situations.The price of anti minus venom serumanti−venom serum​, sold to those with snake bitessold to those with snake bites​, increased from​ $45 to​ $52, but consumption has still remained the same.In this​ situation, the Law of Demand​ __________.A.does not​ hold, since the product is not sold in normal​ markets, so it cannot follow the Law of Demand.B.​holds, since the Law of Demand must hold for all goods in all instances.C.does not​ hold, since the product sold is required for​ survival, so increasing the price did not affect consumption.D.​holds, since a change in the price of the product resulted in a change in the quantity demanded of the product.

Answer 1

Answer: C. does not​ hold, since the product sold is required for​ survival, so increasing the price did not affect consumption

Explanation:

The law of demand simply stated that when the price of a particular good increases, people will buy less of that product and when there is reduction in the price of the good, consumers will buy more of that particular product.

In the scenario in the question, the law of demand doesn't hold because despite the rise in price, the quantity demanded doesn't change.

Therefore, the correct option is C.