Answer to Question #307490 in Microeconomics for Roo

Question

if we observe more rice is purchased this year than last year, we may conclude that demand has increased and therefore price must have increased. comment.

Answer 1

According to the law of Demand, an increase in quantity demand is brought by the decrease in the price of the product.

Hence, in this particular case, the price must have decreased for the demand to increase this year.