The law of demand indicates that, assuming all other factors are constant, as the price of a product increases, the quantity demanded decreases. This concept is exemplified when_____________ .

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a decrease in the price of apples from $3 per pound to $2 per pound leads to 100 pounds of apples being sold instead of 60 pounds

Correct

a company has exclusive control over the smartphone market, so raising smartphone prices does not significantly affect the quantity demanded

a luxury watch brand finds that its customers are not very sensitive to price changes

a city sees a rise in both public transport fares and the number of commuters using bicycles

an increase in the number of bookstores results in a drop in the average price of books

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The law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will consume that good. This principle is illustrated when there is a decrease in the price of apples from…

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Comments

VohJan 29, 2025

thanks!

rohitJan 30, 2025

Love how you solved this

VasistJun 4, 2024

thanks a lot

PrabhaankApr 14, 2024

good question

What this question tests

What it tests

Whether you can complete the last sentence of an argument in a way that is logically consistent with it.

Common trap

Choosing an option that sounds plausible but contradicts the argument or introduces new information.