According to the law of demand, what role do low prices serve for buyers?
(1 point)
Responses
supply
supply
reward
reward
penalty
penalty
substitute
reward
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. This means that when the price of a product or service decreases, buyers are more likely to purchase it. The reasoning behind this is that lower prices make the product more affordable and attractive to buyers, giving them a sense of reward for their purchase decision.
To understand this concept better, let's break it down step by step:
1. Start with the law of demand: The law of demand states that as the price of a product or service decreases, the quantity demanded by buyers increases, all other factors remaining constant.
2. Determine the role of low prices: In this context, low prices play a role in influencing buyer behavior. They serve as an incentive or reward to buyers by making the purchase more desirable.
3. Understand buyer behavior: Buyers are rational individuals who seek to maximize their satisfaction. When a product or service becomes more affordable due to lower prices, buyers perceive it as a good deal or value for their money. This perception of a reward encourages them to make a purchase, increasing the quantity demanded.
Therefore, according to the law of demand, low prices serve as a reward for buyers, motivating them to purchase a product or service.