Answer :
The Law of Demand is a fundamental principle in economics. It states that, all else being equal, when the price of a product increases, the quantity demanded of that product generally decreases. Conversely, when the price decreases, the quantity demanded typically increases. This relationship is based on the assumption that other factors affecting demand remain constant.
To determine which statement is an example of the Law of Demand, let's examine each option:
1. As Price increases by [tex]$45, Quantity Demanded increases by 159.
- This statement contradicts the Law of Demand. According to the law, if the price increases, the quantity demanded should decrease, not increase.
2. As Price increases by $[/tex]45, Quantity Demanded does not change.
- While no change in quantity demanded could occur in some cases, this statement doesn't align with the basic principle of the Law of Demand, which predicts a decrease in quantity demanded with an increase in price.
3. As Price decreases by [tex]$45, Quantity Demanded decreases by 159.
- This is the opposite of what the Law of Demand states. According to the law, a decrease in price should lead to an increase in quantity demanded, not a decrease.
4. As Price increases by $[/tex]45, Quantity Demanded decreases by 159.
- This statement is consistent with the Law of Demand. It describes a scenario where an increase in price results in a decrease in quantity demanded, which is exactly what the Law of Demand predicts.
Therefore, the statement "As Price increases by $45, Quantity Demanded decreases by 159" is an example of the Law of Demand.
To determine which statement is an example of the Law of Demand, let's examine each option:
1. As Price increases by [tex]$45, Quantity Demanded increases by 159.
- This statement contradicts the Law of Demand. According to the law, if the price increases, the quantity demanded should decrease, not increase.
2. As Price increases by $[/tex]45, Quantity Demanded does not change.
- While no change in quantity demanded could occur in some cases, this statement doesn't align with the basic principle of the Law of Demand, which predicts a decrease in quantity demanded with an increase in price.
3. As Price decreases by [tex]$45, Quantity Demanded decreases by 159.
- This is the opposite of what the Law of Demand states. According to the law, a decrease in price should lead to an increase in quantity demanded, not a decrease.
4. As Price increases by $[/tex]45, Quantity Demanded decreases by 159.
- This statement is consistent with the Law of Demand. It describes a scenario where an increase in price results in a decrease in quantity demanded, which is exactly what the Law of Demand predicts.
Therefore, the statement "As Price increases by $45, Quantity Demanded decreases by 159" is an example of the Law of Demand.
