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A music store holds a half-price sale on all CDs. During the sale, people buy more CDs than usual. What does this event show?

Ainelasticity of demand

Bthe substitution effect

Cthe law of demand

Dthe income effect

Verified Answer :

A music store holds a half prices sale on all CDs. During the sale, people buy more CDs than usual. by the statement above sentence this event show: c. the law of demand.

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Answer:

C. the law of demand

Explanation:

This emphasizes the Demand Law, which states that consumers are rational and seek to maximize their pursuit by buying more goods at the lowest possible price. Thus, when consumers consider the price high, the demand is lower. However, as price decreases, demand increases. This is exactly what happened, when the price of CDs has halved, leading to higher demand than usual.

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