Which of the following is a violation of the law of demand? A. A young man received a raise of $10,000 a year and buys more steak than before, even though the price of steak increased 5 percent. B. The price of diapers increases but a woman purchases more diapers after she has a baby. C. The price of gasoline increases but a traveling salesman increases his purchases of gasoline. D. A young woman buys more butter after the price of margarine increased, even though the price of butter is still greater than the price of margarine.

C. The price of gasoline increases but a traveling salesman increases his purchases of gasoline.

Explanation:

With a few exceptions the Law of Demand states that, QUANTITY DEMANDED OF A GOOD MUST FALL IF PRICES OF SAME GOOD RISES.

The Price of gasoline has increased yet the Sales man purchases more gasoline. This violates the law because he should be buying less gasoline as prices have increased to keep his costs down.

Option B speaks to one of those aforementioned exceptions. The Diaper is an ESSENTIAL GOOD for the woman which means that she will keep spending regardless of price to get that good.

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30

answerindividual preferences are not revealed in the market for the good;