Question

Your friend tells you the following:"The Law of Demand does not work ALL the time. As an example, think about the demand for luxury cars (e.g. BMWs, Porshe, etc). Demand for those luxury cars increases when the price of the car increases."Your friend is:

Answer 1

Answer:

The correct answer is letter "B": wrong; demand is not the same as quantity demanded.

Explanation:

Quantity demanded is not the same as Demand. Quantity demanded represents the amount of a good or service consumers request. Demand refers to all the factors influencing that the price of a good or service changes when at least one of those factors change.

Thus, your friend must differentiate first what as demand and what quantity demanded is before making any related statement.