Econ question about law od demand?

Question

Suppose a producer sells 1000 units of a product a $5 per unit one year, 2000 units at $8 the next year, and 3000 units at $10 the third year. Is this evidence that the law of demand is violated? Explain.

Answer 1

No. The Law of Demand says that if the price of a good increases, the demand of the good decreases. However, what's different in this scenario is that these prices/quantities are given in 3 different years.

For example, suppose that the good in question is an iPod, and assume that in Year 1, the iPod wasn't very fashionable (not true, but assume it wasn't). Because of that, in Year 1, Apple only sold 1000 iPods at 50 dollars each. Now suppose in Year 2, iPods were suddenly seen as being fashionable (for whatever reason), the demand of iPods has now increased (represented by a upward shift of the demand curve). Because of this, in Year 2, Apple can sell 2000 iPods at 80 dollars each. This example works without violating the law of demand.

What would violate the law of demand is this:
Suppose in Year 1, 1000 iPods were sold at 50 dollars per unit, however, if the price was at 80 dollars, 2000 iPods would've been sold.

Hope this helps.

And also, a type of good that violates the law of demand (i.e. a good whose demand increases as the price increases) is called a Giffen good. And to date, there aren't any proven Giffen goods.

Answer 2

No, this discusses the Law of Supply. The Law of Demand states that quantity demand decreases as supply increases.

The Law of Supply is that quantity produced will increase only if price increases. The example you provide is an example of diminishing returns. It costs more and more to produce a greater quantity. The marginal cost is increasing. This example provides no information about the demand for the product, only the cost to produce it.

Answer 3

The regulation of grant and insist easily does be conscious to luxuries and antiques often. What does the regulation of grant and insist say will ensue? merely that cost will equate grant and insist. the quantity of antiques is fixed yet call for isn't and the cost has been bid as much as a level the place merely particular human beings could have sufficient money them and that they are keen to pay that cost for them. it is spoke of as smart call for and this is the only call for that rather concerns; i could rather desire to have a Picasso in my front room yet I easily have been priced out of the industry because of the fact I merely make $60k a three hundred and sixty 5 days and it may take me a hundred years to have sufficient money one. cost has equated grant and insist. Granted, although, there are some luxuries that don't persist with grant and insist yet this phenomenon won't be able to be prolonged to all luxury products. those products are formally spoke of as Veblen products, after the guy that first examined the phenomenon. Veblen products are products that rich human beings use to demonstrate their wealth, so that they alter into extra alluring as their cost rises.