Ian, the owner of 5-for-1 Pizza, has noticed that when he increases the price of his pizzas by $2.00, the number of pizzas that he sells drops by 30 percent. Ian has discovered
A) the law of supply and demand.
B) the supply curve.
C) the demand curve.
D) the law of supply.
E) the law of demand.

Question

Quizplus · Accepted Answer

The law of demand states that, all else being equal, as the price of a product increases, the quantity demanded decreases, and vice versa. Ian's observation that increasing the price leads to a decrease in sales aligns with this principle.

Ian, the Owner of 5-For-1 Pizza, Has Noticed That When