Which of the Following Demonstrates the Law of Demand

question 104

Multiple Choice

Which of the following demonstrates the law of demand?

• A)After Jon got a raise at work,he bought more pretzels at $1.50 per pretzel than he did before his raise.
• B)Melissa buys fewer muffins at $0.75 per muffin than at $1 per muffin,other things equal.
• C)Dave buys more donuts at $0.25 per donut than at $0.50 per donut,other things equal.
• D)Kendra buys fewer Snickers at $0.60 per Snickers after the price of Milky Ways falls to $0.50 per Milky Way.

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Definitions:

Profit Increase

A rise in the difference between a business's revenues and its expenses, indicating improved financial performance.

Perfectly Competitive Firm

A company that operates in a market where there are many sellers and buyers, the product is homogeneous, and there are no barriers to entry or exit.

Breaks Even

A financial situation where total revenues are equal to total costs, resulting in no profit or loss.

Short Run

A period in economics where at least one factor of production is fixed, influencing the responsiveness of a company to changes in market demand.