According to the law of demand, what role do low prices serve for buyers? (1 point) Responses penalty penalty reward reward substitute substitute supply
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. When prices are low, buyers are more likely to purchase a product or service because it becomes more affordable. This is because buyers are generally rational and seek to maximize their utility or satisfaction from consuming goods and services. When the price of a product decreases, it creates an incentive for buyers to purchase more, as they can now obtain more utility for the same amount of money.
To understand the role of low prices for buyers according to the law of demand, you can analyze the relationship between price and quantity demanded. As the price of a good or service decreases, assuming all other factors remain constant, the quantity demanded is likely to increase. This is because buyers are more willing and able to purchase the product at a lower price. On the other hand, if the price increases, it reduces the quantity demanded, as buyers may find the product less affordable or prefer to look for alternatives.
In summary, low prices under the law of demand act as a reward for buyers by making products more affordable and incentivizing them to purchase more.