Which of the following scenarios illustrates the law of demand?
A)Francis does not care about the price of coffee at the coffee shop - he must buy two cappuccinos every day, regardless of the price.
B)A research company finds that the more expensive a particular brand of a designer handbag, the more that consumers are willing to purchase the brand.
C)John likes to drink spring water. At $2 he buys four bottles of water, and at $1.50 he still buys four bottles of water.
D)Kathleen eats more steak when the price is low, and less when the price is high.

Question

Quizplus · Accepted Answer

Kathleen's behavior of buying more steak when the price is low and less when the price is high is an example of the law of demand. As the price of steak decreases, the quantity demanded by Kathleen increases, and as the price of steak increases, the quantity demanded by Kathleen decreases.

Which of the Following Scenarios Illustrates the Law of Demand