Consider a local market for 4-litre containers of windshield-wiper fluid.In January 2015,100 000 containers were sold at a price of $3 each.In March 2015,120 000 containers are sold at a price of $8 each.Does this change in equilibrium price and quantity violate the "law of demand"?
A) Not necessarily,because the supply curve could have shifted to the right,leading to an increase in equilibrium price and quantity.
B) Not necessarily,because the demand curve could have shifted to the right,leading to an increase in equilibrium price and quantity.
C) Not necessarily,because the demand curve could have shifted to the left,leading to an increase in equilibrium price and quantity.
D) Not necessarily,because the supply curve could have shifted to the left,leading to an increase in equilibrium price and quantity.
E) No,because the "law of demand" is not valid.
Correct Answer:
Verified
Q122: Consider a negatively sloped demand curve for
Q123: Which of the following statements is correct