MACROECONOMICS FOR TODAY-W/LMS MINDTAP
MACROECONOMICS FOR TODAY-W/LMS MINDTAP
9th Edition
ISBN: 9781305927117
Author: Tucker
Publisher: CENGAGE L
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Chapter 3, Problem 1SQP
To determine

Explain that the given statement violates the law of demand.

Expert Solution & Answer
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Explanation of Solution

If people buy a good with higher price, they demand higher quality for that good. Generally, as per the law of demand, when price of a good increases, it decreases the quantity demanded of that good. Under this case, it violates the law of demand. Here, the quality and other non-price factors such as taste and preference are the determinants of demand for goods.

Economics Concept Introduction

Demand: Demand refers to the total value of goods and services that are demanded at a particular price in a given period of time.

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