Suppose Lorna buys more sweaters even if the price of sweaters rises.Other things constant,she is acting contrary to the law of _____
A)equi-marginal utility.
B)increasing costs.
C)one price.
D)diminishing costs.
E)demand.

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. Lorna buying more sweaters even as the price rises contradicts this principle, indicating an inverse relationship to what the law of demand would predict.

Suppose Lorna Buys More Sweaters Even If the Price of Sweaters