At a Price of $5, Sam Buys 10 Units of a Product;

question 167

Multiple Choice

At a price of $5, Sam buys 10 units of a product; when the price increases to $6, Sam buys 8 units. Martha says Sam's demand has decreased. Is Martha correct?

• A) Yes, Martha is correct. Sam's demand has decreased.
• B) No, Martha is incorrect. Sam's demand has increased.
• C) No, Martha is incorrect. Sam's quantity demanded has decreased, and his demand has not changed.
• D) No, Martha is incorrect. Sam's quantity demanded has increased, and his demand has increased.

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Definitions:

Illegal Contract

An agreement that is void and unenforceable by law due to its illegal subject matter or terms.

Legislation

The process of making or enacting laws.

Void

A term describing a legal document that is null and has no legal force or effect.

Willful

Actions done intentionally or with reckless disregard for the outcome, particularly relating to misconduct or negligence.