What is the law of demand? What will be an ideal ...

[asmith134]

What is the law of demand?
 
  What will be an ideal response?

Question 2

If Safeway reduced its grocery prices below cost in a particular metropolitan area and kept them there until all other grocery stores in the area had been forced into bankruptcy, Walmart would almost certainly sustain huge net losses
 
  A) in the short run and the long run because grocery stores would reappear quickly when Walmart subsequently set high prices.
  B) in the short run but not in the long run because it could charge very high prices afterward.
  C) in the short run but not in the long run because the policy would lower Walmart's costs of buying from suppliers.
  D) only if the government enforced the antitrust laws in a fair and even-handed way.

[JYan]

Answer to Question 1

The law of demand states that other things remaining the same, if the price of a good rises, the quantity demanded of that good decreases, and if the price of a good falls, the quantity demanded of that good increases.

Answer to Question 2

A

[asmith134]

Thank you

[JYan]

Happy to help you