Which of the following is an example of the law of demand?
A) A decrease in the price of tea is followed by an increase in tea purchases.
B) A decrease in the price of tea is followed by a decrease in tea purchases.
C) An increase in the price of tea has no effect on the amount of tea purchased.
D) The amount of tea purchased increases when the price is constant.

Question

Quizplus · Accepted Answer

The law of demand states that, all else being equal, as the price of a good decreases, the quantity demanded of that good increases. Choice A directly reflects this principle by showing that a decrease in the price of tea leads to an increase in tea purchases.

Which of the Following Is an Example of the Law