Answer to Question #127257 in Microeconomics for Babatunde

Question

Explain why the law of demand is not violated when you observe the quantity demanded of ice cream cones at your local park is lower in December than in July even though the price is higher in July than it is in December. Your response should be at least 75 words (1 paragraph) in length.

Answer 1

The law of demand states that the quantity demanded will increase if the price of the product decreases.The natural consumer behavior is that when all things are held constant, the increase in price should lead to a decrease in quantity demanded. This law is effective where the only factor existing in the market is the ice cream price.

If other factors like taste and preference or consumer income come in, it can cause a shift in the demand curve. According to the consumers, in July the need and taste and preference of ice cream is higher than in December. With the taste and preference factor prevailing the law of demand is not violated.