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31 December, 21:45

Select the correct answer. Alison was assigned to perform an analysis of her company's sales. She found that when the price of the coffee they sold was increased, the number of coffee units sold per day decreased. The situation remained the same until the price was brought back to the previous level at which the coffee unit sales per day increased. How can Alison explain this phenomenon in her report? A. law of service B. law of demand C. supply curve D. law of sustenance E. supply variation

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  1. 31 December, 22:01
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    law of demand

    Answer: Option B.

    Explanation:

    In Economics one of the most important concepts is the Law of demand. Law of demand means that with the increase in the price of a commodity, the demand of that commodity will fall.

    This clearly shows that the price of the commodity is inversely related to the quantity of that commodity demanded. Thus the graph or the slope of the demand curve is downward sloping showing the negative relationship between these two.
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