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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
(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
