Question

Which example best reflects the real-life application of the Law of Demand, as given in the introduction?

Options

• Going to the cinema more often when ticket prices decrease

• Reducing purchases as prices decrease

• Buying less cotton as the price falls

• Not changing movie frequency despite lower prices

Answer 1

Going to the cinema more often when ticket prices decrease

Explanation:

The example shows that a person will see more movies if ticket prices are lower, demonstrating the Law of Demand.