Which of the following is consistent with the law of demand?
Part 2
A.
An increase in the supply of MP 3 players
causes a decrease in the consumption of MP 3 players
.
B.
The state of California
has less grape
regulation than New York
,
and grape
production is higher in New York
.
C.
A reduction
of the price of salt led to a 5 percent increase
in the quantity of salt purchased.
D.
Airplanes flew with fewer
passengers after the terrorist strikes of 9 divided by 11
.
C. A reduction of the price of salt led to a 5 percent increase in the quantity of salt purchased.
C. A reduction of the price of salt led to a 5 percent increase in the quantity of salt purchased.
The law of demand states that there is an inverse relationship between the price of a good and the quantity demanded, ceteris paribus (assuming all other factors remain constant). When the price of a good decreases, the quantity demanded typically increases. In this case, when the price of salt is reduced, the quantity of salt purchased increases, which is consistent with the law of demand.