Which of the following is consistent with the law of demand?
Part 2
A.
A doubling
of the price of salt led to a 5 percent drop
in the quantity of salt purchased.
B.
Airplanes flew with more
passengers after deregulation of airlines
.
C.
The state of Washington
has less apple
regulation than California
,
and apple
production is higher in California
.
D.
An increase in the supply of oranges
causes a decrease in the consumption of oranges
.
A. A doubling of the price of salt leading to a 5 percent drop in the quantity of salt purchased is consistent with the law of demand. According to the law of demand, as the price of a good or service increases, the quantity demanded for that good or service decreases.
The option that is consistent with the law of demand is A. A doubling of the price of salt led to a 5 percent drop in the quantity of salt purchased.
The law of demand states that as the price of a good or service increases, the quantity demanded decreases, all other factors being equal. In option A, when the price of salt doubled, the quantity of salt purchased dropped, which is in line with the law of demand.