Question
An analyst observes the following equilibrium price-quantity combinations in the market for restaurant meals in a city over a four-year period: Year Price Quantity (meals,
An analyst observes the following equilibrium price-quantity combinations in the market for restaurant meals in a city over a four-year period:
Year Price Quantity
(meals, 000's/month)
1 $12 20
2 $15 30
3 $17 40
4 $20 50
He concludes that the market defies the law of demand. Is he correct? Why or why not?
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Financial Markets and Institutions
Authors: Jeff Madura
11th Edition
1133947875, 9781305143005, 1305143000, 978-1133947875
