A phone provider who offers lower prices per minute to customers who use a lot of minutes is violating the law of demand.

Question

Quizplus · Accepted Answer

This statement is incorrect. A phone provider who offers lower prices per minute to customers who use a lot of minutes is actually following the law of demand, which states that as the price of a good or service decreases, the quantity demanded of that good or service will increase. By offering lower prices for higher usage, the phone provider is incentivizing customers to use more minutes, which in turn increases demand for their service.

A Phone Provider Who Offers Lower Prices Per Minute to Customers