Which of the following is the best example of the Law of Demand?
A) When Alex received a pay hike, his consumption of all goods increased.
B) When the price of gasoline increased, the demand for cars fell.
C) When the price of Nokia phones increased, the demand for Samsung phones increased.
D) When the price of tea increased, the quantity demanded of tea decreased.

Question

Quizplus · Accepted Answer

The Law of Demand states that as the price of a good or service increases, the quantity demanded of that good or service will decrease, assuming all other things remain equal. This is exemplified in choice D, where an increase in the price of tea leads to a decrease in the quantity demanded of tea. Choices A and C do not illustrate the Law of Demand, as they suggest an increase in consumption or demand when prices increase. Choice B is not a clear example of the Law of Demand, as the decrease in demand for cars may be influenced by a variety of factors beyond just the price of gasoline.

Which of the Following Is the Best Example of the Law