You just took an Uber from home to campus for the first time and were willing to pay $13 for the trip. It was so much easier than driving yourself that you are willing to pay $21 for the same trip tomorrow. Determine if you have violated the law of demand based on your choices, and why or why not that is the case.
a. do not violate the law of demand because your preference for the product changed after you experienced the good.
b. do violate the law of demand because the law of demand states that quantity demanded decreases as price increases.
c. do not violate the law of demand because the law of demand states that quantity demanded increases as price increases.
d. do violate the law of demand because you have chosen to buy the same amount of the product at two different prices.
Ans: a. do not violate the law of demand because your preference for the product changed after you experienced the good.
You might also like to view...
Suppose a lobster supper in Maine costs fewer dollars than a Lobster supper in Paris, France. Explain why this is inconsistent with purchasing-power parity and explain why the inconsistency may exist
In general, the term "ceteris paribus" means
A. all else equal B. holding everything else variable C. unsettled mathematical paradigms D. Both A and B
The "exotic" mortgage instrument of recent years is exemplified by the
A. "traditional" mortgage. B. "magical-mystery" mortgage. C. "interest-only" mortgage. D. bank mortgage loan.
Researchers have found that tax increases may have a small effect in the quantity purchased because
A) individuals might forget about the tax (salience). B) individuals are rational. C) individuals are credit constrained. D) individuals do not care about prices.