Which of the following statements best illustrates the law of demand?
A)When the price of pepperoni rises, the demand for pizza falls.
B)When the weather gets hotter, the quantity demanded of ice cream rises.
C)When the price of lemons falls, the demand for lemonade rises.
D)When the price of eggs rises, the quantity demanded of eggs falls.

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, and vice versa. Choice D directly illustrates this principle by showing that an increase in the price of eggs leads to a decrease in the quantity demanded of eggs.

Which of the Following Statements Best Illustrates the Law of Demand