Which of the following situations best demonstrates the law of demand?
A) Movie-goers react to an increase in the price of a theater ticket by seeing fewer movies per year.
B) Movie-goers see fewer movies per year due to an overall decrease in the quality of newly released motion pictures.
C) A drought causes a decrease in the availability of pumpkins, resulting in fewer jack-o-lanterns displayed on Halloween.
D) An increase in the number of people writing Economics textbooks results in a decrease in average textbook prices.

Question

Quizplus · Accepted Answer

The law of demand states that, all else being equal, as the price of a good or service increases, the quantity demanded decreases, and vice versa. Option A illustrates this concept as movie-goers see fewer movies when ticket prices rise.

Which of the Following Situations Best Demonstrates the Law of Demand