Which of the following is an example of the law of demand?
A) An increase in the price of magnetic optical disks is followed by a reduction in the amount of magnetic optical disks purchased.
B) An increase in the price of tablets is followed by an increase in the sale of tablets.
C) A decrease in the price of milk has no effect on the amount of milk consumed.
D) The amount of smartphones sold increases while the price of smartphones is constant.

Question

Quizplus · Accepted Answer

The law of demand states that as the price of a good or service increases, the quantity demanded of that good or service will decrease, ceteris paribus. Therefore, option A is an example of the law of demand since an increase in the price of magnetic optical disks is followed by a reduction in the amount of magnetic optical disks purchased. The other options do not demonstrate the inverse relationship between price and quantity demanded.

Which of the Following Is an Example of the Law