Your friend tells you the following: "The Law of Demand does not work ALL the time. As an example, think about the demand for luxury cars $($e$.$g$.$ BMWs$,$ Porsche, etc$).$ Demand for those luxury cars increases when the price of the car increases."

Your friend is:

correct; since luxury cars are superior goods

wrong; demand is not the same as quantity demanded.

correct; since luxury cars give people more social status.

wrong; the price increase will affect the supply curve not demand. $.$