Which statement BEST exemplifies the law of demand?
A) As income taxes rise,fewer new cars are purchased.
B) As the price of corn rises,more hectares of corn are planted.
C) As the price of a car rental rises,fewer cars are rented.
D) As the population rises,more electricity is consumed.

Question

Quizplus · Accepted Answer

The law of demand states that as the price of a good or service increases, the quantity demanded of that good or service will decrease, all other factors being equal. Choice C exemplifies this law as it shows that as the price of a car rental rises, fewer cars are rented, indicating a decrease in quantity demanded. The other choices do not demonstrate this inverse relationship between price and quantity demanded.

Which Statement BEST Exemplifies the Law of Demand