If the price of movies on DVD rises while the price of movies purchased on demand through the Internet remains the same, the law of demand predicts that consumers will:
A. substitute movies on DVD for movies on the Internet.
B. substitute movies on the Internet for movies on DVD.
C. buy only movies on DVD.
D. buy only movies on the Internet.
Answer:B
If the price of movies on DVD rises while the price of movies purchased on demand through the Internet remains the same, the law of demand predicts that consumers will:
A. substitute movies on DVD for movies on the Internet. B. substitute movies on the Internet for movies on DVD. C. buy only movies on DVD. D. buy only movies on the Internet.
Explanation: The law of demand is based on the principle that consumers will substitute away from products that have become relatively more expensive; this does not mean that they will necessarily stop buying more expensive products.