Which statement illustrates the law of demand? Fewer people play golf because incomes are lower. Consumers buy more personal computers because prices have fallen. An increase in tuition encourages more students to enroll in college because the quality of education has risen. Oil companies drill for new sources because prices are higher.

Question

Ingrid Steele

Business

26 October, 13:02

Which statement illustrates the law of demand? Fewer people play golf because incomes are lower. Consumers buy more personal computers because prices have fallen. An increase in tuition encourages more students to enroll in college because the quality of education has risen. Oil companies drill for new sources because prices are higher.

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Answers (1)

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Reid Bass · Answer 1

Consumers buy more personal computers because prices have fallen.

Explanation:

Demand is the willingness to buy a good or service and the ability to pay for it, must have both elements for demand to exist.

In economics, the law states that, all else being equal, as the price of a product increases, quantity demanded falls; likewise, as the price of a product decreases, quantity demanded increases.

In other words, the law of demand states that the quantity demanded and the price of a commodity are oppositely related, other things remaining constant.

If the income of the consumer, prices of the related goods, and preferences of the consumer remain unchanged, then the change in quantity of good demanded by the consumer will be negatively correlated to the change in the price of the good.