According to the law of demand, what role do low prices serve for buyers? (1 point) Responses supply supply reward reward substitute substitute penalty penalty
According to the law of demand, low prices serve as a reward for buyers.
According to the law of demand, low prices serve as a reward for buyers.
According to the law of demand, low prices serve as a reward for buyers. The law of demand states that, all else being equal, as the price of a good or service decreases, the quantity demanded by buyers will increase. In other words, when the price of a product is low, it incentivizes buyers to purchase more of it because they perceive it as a good deal or value for their money.
To understand the role of low prices in the law of demand, you can consider the concept of price elasticity of demand. Price elasticity of demand measures how sensitive the quantity demanded is to changes in price. When prices are low, the demand for a product becomes more elastic, meaning that a small decrease in price results in a relatively larger increase in quantity demanded.
To find more information on the role of low prices in the law of demand, you can refer to economic textbooks, online resources, or scholarly articles that discusses the theory and application of demand and price elasticity. These resources will provide in-depth explanations and real-world examples to help solidify your understanding.