Which of the following illustrates the law of demand?
A)Jorge buys fewer pencils at $2 per pencil than at $1 per pencil, ceteris paribus .
B)Chen buys more ice cream at $4 per half-gallon than at $3 per half gallon, ceteris paribus .
C)Karissa buys fewer sweaters at $50 each than at $75 each, ceteris paribus .
D)Jim buys more books at $15 each than at $12 each, ceteris paribus.

Question

Which of the following illustrates the law of demand?
A)Jorge buys fewer pencils at $2 per pencil than at $1 per pencil, ceteris paribus .
B)Chen buys more ice cream at $4 per half-gallon than at $3 per half gallon, ceteris paribus .
C)Karissa buys fewer sweaters at $50 each than at $75 each, ceteris paribus .
D)Jim buys more books at $15 each than at $12 each,  ceteris paribus.

Quizplus · Accepted Answer

The law of demand states that, ceteris paribus (all else being equal), as the price of a good or service increases, the quantity demanded decreases. Choice A shows that demand for pencils decreases as the price increases, which illustrates the law of demand. Choices B, C, and D all show an increase in demand as the price increases, which contradicts the law of demand.

Which of the Following Illustrates the Law of Demand