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_____________ .

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

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

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

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

(E) 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



OA E

Source: Manhattan Prep