If the price of chicken rises from $1.25 per pound to $1.75 per pound, and the quantity demanded goes from 250 pounds per day to 175 pounds per day, this illustrates
A)the law of diminishing returns.
B)the law of supply.
C)the law of demand.
D)the law of supply and demand.

Question

Quizplus · Accepted Answer

The change in price causing a change in quantity demanded illustrates the law of demand. As the price of chicken increased, the quantity demanded decreased, showing an inverse relationship between price and quantity demanded. The other choices (A) the law of diminishing returns and (B) the law of supply do not apply to the scenario described. While the law of supply and demand is related to this scenario, it is not a specific answer choice.

If the Price of Chicken Rises from $1