Suppose when the price of laptops falls, college students buy more laptops. This implies that
A) there is a positive relationship between laptop prices and quantities purchased by college students.
B) there is a negative relationship between laptop prices and quantities purchased by college students.
C) there is a direct relationship between laptop prices and quantities purchased by college students.
D) there is a one-to-one relationship between laptop prices and quantities purchased by college students.

Question

Quizplus · Accepted Answer

This statement implies an inverse relationship between laptop prices and quantities purchased by college students. When the price of laptops falls, the quantity demanded (i.e., the number of laptops purchased) increases. This is consistent with the law of demand, which states that as the price of a good decreases, the quantity demanded will increase, ceteris paribus.

Suppose When the Price of Laptops Falls, College Students Buy