Alice goes to the local supermarket to purchase one package of her favorite taco shells. She often pays $1.50 for a package, but she finds they are on sale for $1 each. According to the law of demand, one can expect Alice to:
A)purchase an alternative good.
B)purchase more than one package of taco shells.
C)decide not to purchase taco shells on this visit.
D)buy only one package of taco shells.

Question

Quizplus · Accepted Answer

According to the law of demand, when the price of a good decreases, consumers are likely to purchase more of it. Since the taco shells are on sale, Alice is expected to buy more than one package.

Alice Goes to the Local Supermarket to Purchase One Package