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Secure https//www.mathxl.com/Student/Player Test.aspx2testld 165754202&icenterwin; yes ECO 202-05 Principles of Macroeconomics (FA17) est: ECO 202 Final Exam Time Remm his Question: 1 pt 90f 95 (5 complete) Consider whether the Law of Demand holds in the following situations Ketchup Market The price of anti-venom serum, sold to those with snake bites, increased from $45 to $52, but consumption has still remained the same. 4 S- In this situation, the Law of Demand O A. holds, since a change in the price of the product resulted in a change O B. holds, since the Law of Demand must hold for all goods in all O C. does not hold, since the product sold is required for survival, so 0 D, does not hold, since the product is not sold in normal markets, so it in the quantity demanded of the product instances increasing the price did not affect consumption cannot follow the Law of Demand Di The demand curve for anti-venom serum is Quantity obilions) 0 A. O B. ° C. near vertical, since even if the price rises bite victims wa be wiling to near horizontal, since even a small rise in the price will result in bite victims cutting back on the quantity they demand downward-sloping since the demand for anti-venom serum reacts the same to changes in price as any other good buy the same quantity A pest attack on the tomato crop increases the cost of producing ketchup At the same time we see the price of hamburgers falls Suppose that after both of these events the consumption of ketchup is left unchanged Click the graph, choose a tool in the palette and follow the instructions to create your graph ons

Explanation / Answer

1. C) doesn't hold since the product sold is for survival so increasing the price doesn't affect the consumption.

(Venom's demand won't undergo a change as it as an essential antidote for saving lives)

2. C) near vertical , since even if price rises victims will be willing to buy the same quantity

( Since the demand is inelastic, the demand curve will be vertical )

3. B) doesn't hold as there is no change in quantity demanded of ketchup

( According to the law of demand when price increases quantity demanded falls so in this case law of demand doesn't hold good)

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