John argues that when the price of a good decreases, people will purchase less of the good. This statement is
A) consistent with the law of demand.
B) inconsistent with the law of demand.
C) referring to money prices.
D) consistent with the law of supply.

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. John's statement is inconsistent with this law because it suggests the opposite relationship between price and quantity demanded.

John Argues That When the Price of a Good Decreases