John believes that when the price of a good increases people will purchase more of the good. This statement is
A)consistent with the law of demand.
B)inconsistent with the law of demand.
C)referring to money prices.
D)consistent with the law of supply.

Question

Quizplus · Accepted Answer

John's statement is inconsistent with the law of demand. The law of demand states that as the price of a good increases, the quantity of the good demanded will decrease, all other factors being equal. Therefore, John's belief is not in line with this fundamental economic principle.

John Believes That When the Price of a Good Increases