Question

Which of the following is consistent with the law of demand?

A. A decrease in the price of tacos causes sellers to want to sell less
B. An increase in the people's craving for pizza causes buyers to buy more pizza
C. An increase in the price of hamburgers causes buyers to buy fewer hamburgers
D. A decrease in the price of egg rolls causes a decrease in the quantity of egg rolls demanded

Answer 1

Option C, 'An increase in the price of hamburgers causes buyers to buy fewer hamburgers,' is consistent with the law of demand. The correct option is (C).

Step-by-step explanation:

The law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will demand that good. In other words, the higher the price, the lower the quantity demanded.

With that in mind, option B is inconsistent with the law of demand because an increase in people's craving for pizza would actually cause buyers to demand more pizza, not less.

On the other hand, option C aligns with the law of demand as an increase in the price of hamburgers would result in buyers wanting to buy fewer hamburgers.

Therefore, option C, 'An increase in the price of hamburgers causes buyers to buy fewer hamburgers,' is consistent with the law of demand.