Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

A survey shows that on average 100 people go to the movies when the price is $6 and 300 people go when the price is $9. Does this violate the laws of supply and demand?

April 26, 2017average Movies people price shows Survey

0

Posted

A survey shows that on average 100 people go to the movies when the price is $6 and 300 people go when the price is $9. Does this violate the laws of supply and demand?

1 Answer

0

Posted

No, because the period of time is not stated and ceteris paribus is not assumed. If both the period of time was stated and ceteris paribus was assumed, this could still hold true if movies are a Giffen good meaning price and quantity demanded have a direct relationship.