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. In other words, the higher the price, the lower the quantity demanded. This principle is illustrated when _____________

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Company A has a monopoly over the widget market so an increase in widget prices has little effect on the quantity demanded

a manufacturer of luxury cars noticed that its customer base is relatively unresponsive to changes in price

a city experiences an increase in both gasoline prices and the number of people taking public transportation

an increase in the number of computer retailers led to a decrease in the average price of computers

a reduction in the price of oranges from $2 per pound to $1 per pound results in 75 pounds of oranges being sold as opposed to 50 pounds

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Comments

NehalFeb 18, 2025

can you explain more?

ShantanuMar 10, 2025

Thank for sharing!

SushilJan 30, 2024

finally understood this

SampadaSep 21, 2024

cheers!

What this question tests

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

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