Lorna loves sweaters! She has drawers filled with them, and continues to buy them. But she's sort of strange in this one respect: she buys more when price rises. It is strange because her behavior violates the law of
A) the ratio of marginal utility to price
B) the ratio of price to marginal utility
C) demand
D) diminishing marginal utility
E) increasing marginal utility

Question

Quizplus · Accepted Answer

The law of demand states that, all else being equal, as the price of a good increases, the quantity demanded of that good decreases. Lorna's behavior of buying more sweaters as the price rises violates this principle.

Lorna Loves Sweaters! She Has Drawers Filled with Them, and Continues