Which of the following is consistent with the law of demand?
A) A decrease in the price of tacos causes sellers to want to sell less.
B) An increase in people's craving for pizza causes buyers to buy more pizza.
C) An increase in the price of hamburgers causes buyers to buy fewer hamburgers.
D) A decrease in the price of egg rolls causes a decrease in the quantity of egg rolls demanded.

Question

Quizplus · Accepted Answer

The law of demand states that as the price of a good or service increases, the quantity demanded decreases, and as the price decreases, the quantity demanded increases. Therefore, C is consistent with the law of demand as it shows that an increase in price (of hamburgers) is causing buyers to buy fewer (quantity demanded) hamburgers. A is incorrect because a decrease in price causes sellers to want to sell more, not less. B is incorrect because an increase in craving does not necessarily mean an increase in quantity demanded, and D is incorrect because a decrease in price should lead to an increase in the quantity demanded, not a decrease.

Which of the Following Is Consistent with the Law of Demand