Which of the following situations best demonstrates the law of demand?
A. Movie-goers react to an increase in the price of a theater ticket by seeing fewer movies per year.
B. Movie-goers see fewer movies per year due to an overall decrease in the quality of newly released motion pictures.
C. A drought causes a decrease in the availability of pumpkins, resulting in fewer jack-o-lanterns displayed on Halloween.
D. An increase in the number of people writing Economics textbooks results in a decrease in average textbook prices.
Answer:A
Which of the following situations best demonstrates the law of demand?
A. Movie-goers react to an increase in the price of a theater ticket by seeing fewer movies per year. B. Movie-goers see fewer movies per year due to an overall decrease in the quality of newly released motion pictures. C. A drought causes a decrease in the availability of pumpkins, resulting in fewer jack-o-lanterns displayed on Halloween. D. An increase in the number of people writing Economics textbooks results in a decrease in average textbook prices.
Explanation: The correct answer focuses on the relationship between price and quantity demanded so it is the best demonstration of the law of demand.