How Markets Work Online Practice

Question

Complete this assessment to review what you’ve learned. It will not count toward your grade.
4 of 154 of 15 Items
Question
Use the table to answer the question.

Price ($) Quantity Demanded (thousands)
1,000 500
1,400 300
1,800 200
2,200 250
A hypothetical demand schedule for a particular service is given above. Which of the following correctly explains how the law of demand has been violated?

(1 point)
Responses

At a price of $2,200
, the quantity demanded should be less than 200,000.
At a price of 2,200 dollars , the quantity demanded should be less than 200,000.

At a price of $1,800
, the quantity demanded should be less than 200,000.
At a price of 1,800 dollars , the quantity demanded should be less than 200,000.

At a price of $1,000
, the quantity demanded should be greater than 500,000.
At a price of 1,000 dollars , the quantity demanded should be greater than 500,000.

At a price of $1,400
, the quantity demanded should be greater than 500,000.
At a price of 1,400 dollars , the quantity demanded should be greater than 500,000.

Answer 1

At a price of $1,400, the quantity demanded should be greater than 500,000.

This statement correctly explains how the law of demand has been violated. According to the demand schedule, at a price of $1,400, the quantity demanded is 300,000, which is greater than the initial quantity demanded of 500,000 at a price of $1,000. This violates the law of demand, which states that as the price of a good or service increases, the quantity demanded decreases.