Alyssa rents 5 movies per month when the price is $3.00 each and 7 movies per month when the price is $2.50. What has Alyssa demonstrated?

Question

Quizplus · Accepted Answer

Alyssa's behavior shows the law of demand, which states that as the price of a product decreases, the quantity demanded of that product will increase. When the price of movies decreases from $3.00 to $2.50, Alyssa increases the quantity of movies she rents from 5 to 7 per month. This is consistent with the law of demand.

Alyssa Rents 5 Movies Per Month When the Price Is