Question

Suppose all prices decrease by 10 percent in the year while the total sales of smartphones remain constant. This is: A. not a violation of the law of demand since the law of demand does not apply to expensive goods like smartphones. B. a violation of the law of demand since fewer smartphones should be purchased at a higher price. C. a violation of the law of demand since more smartphones should have been purchased with higher incomes. D. not a violation of the law of demand since the relative price of smartphones did not change.

          Suppose all prices decrease by 10 percent in the year while the total sales of smartphones remain constant. This is:

A. not a violation of the law of demand since the law of demand does not apply to expensive goods like smartphones.
B. a violation of the law of demand since fewer smartphones should be purchased at a higher price.
C. a violation of the law of demand since more smartphones should have been purchased with higher incomes.
D. not a violation of the law of demand since the relative price of smartphones did not change.

Added by Carla W.

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