Lauren buys five lattes per month when the price is $4.00 each and seven lattes per month when the price is $3.50. What has Lauren demonstrated?

Question

Quizplus · Accepted Answer

Lauren's behavior fits the definition of the law of demand, which describes the inverse relationship between the price of a good and the quantity demanded by consumers. In this case, Lauren buys fewer lattes when the price is higher ($4.00) and more lattes when the price is lower ($3.50). This is a typical example of consumer behavior that follows the law of demand.

Lauren Buys Five Lattes Per Month When the Price Is