Final answer:
The Law of Demand is exemplified in option B where Dave buys more donuts at a lower price, which represents the inverse relationship between price and quantity demanded.
Step-by-step explanation:
The Law of Demand signifies the inverse relationship between the price of a good and the quantity demanded, suggesting that when prices fall, the quantity demanded rises, and vice versa, assuming all other factors are constant. To apply this concept to the given scenarios, we must identify which situation accurately reflects this inverse relationship.
- Jon purchasing more pretzels due to a raise in income does not directly demonstrate the law of demand as it relates to a change in price.
- Dave buying more donuts at a lower price corresponds directly with the law of demand, where a decrease in price leads to an increase in the quantity demanded.
- Kendra's change in purchasing behavior towards Snickers is influenced by the change in price of a substitute good (Milky Way), which is related but not a pure example of the law of demand.
- Melissa buying fewer muffins at a higher price does indicate the law of demand; however, the inverse scenario of buying more at a lower price is a more textbook demonstration of the law.
Therefore, the correct answer is B. Dave buys more donuts at $0.25 each than at $0.50 each, demonstrating the law of demand.