Author Question: According to the law of demand, the higher the price, the lower the quantity demanded. But, five ... (Read 51 times)

sjones · **on:** Jun 29, 2018

According to the law of demand, the higher the price, the lower the quantity demanded. But, five years ago the Dropouts used to sell only 50 tickets for their shows at 5 each. Today they sell 5000 tickets at 20 each.

Does the change described above contradict the law of demand? A) Yes, because the price has fallen and the quantity demanded has fallen.
B) Yes, because the price has risen and the quantity demanded has risen.
C) No, because the supply has risen.
D) No, because other things weren't constant.

Question 2

In the figure above, with international trade U.S. consumers buy ________ million T-shirts per year at ________ per T-shirt.

A) 60; 5
B) 40; 8
C) 20; 5
D) 40; 5
E) 60; 11