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STALIN [3.7K]
2 years ago
15

When the price of a Tesla car increased, Abby decided to buy a different car model. Which Economic principle does this demonstra

te?
Social Studies
1 answer:
velikii [3]2 years ago
5 0

Answer:

Law of Demand is the Economic principle that is demonstrated here.

Explanation:

As we know that ,

The Law of Demand is a fundamental principle of Economics which states that at a higher price consumers will demand a lower quantity of a good.

Here,

If the company Tesla is increasing its price then the consumer Abby will search for lower quantity i.e Abby will decide to buy a different car model.

So, The Economic principle that demonstrated here is Law of Demand .

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