According to the law of demand, when the price of a BMW or a Gucci purse increases, the quantity demanded of these goods will also increase because the goods have become more prestigious.

Question

Quizplus · Accepted Answer

According to the law of demand, when the price of a good increases, the quantity demanded of that good decreases, ceteris paribus. The notion that the quantity demanded of goods such as BMWs or Gucci purses will increase when their prices increase because they have become more prestigious is inconsistent with the law of demand.

According to the Law of Demand, When the Price of a BMW