To determine which scenario correctly demonstrates the law of demand, let's first define what the law of demand states. The law of demand suggests that, all else being equal, when the price of a good increases, the quantity demanded for that good decreases, and vice versa.
We need to analyze each given scenario to see if it fits this definition:
1. Scenario 1:
- Initial Price: [tex]$2.00
- Increased Price: $[/tex]2.50
- Initial Quantity: 250 slices
- New Quantity: 175 slices
The price increases from [tex]$2.00 to $[/tex]2.50, and the quantity demanded decreases from 250 slices to 175 slices. This scenario aligns with the law of demand.
2. Scenario 2:
- Initial Price: [tex]$2.50
- Decreased Price: $[/tex]2.00
- Initial Quantity: 300 slices
- New Quantity: 275 slices
The price decreases from [tex]$2.50 to $[/tex]2.00, but the quantity demanded also decreases from 300 slices to 275 slices. This contradicts the law of demand, as we would expect the quantity demanded to increase when the price decreases.
3. Scenario 3:
- Initial Price: [tex]$2.00
- Increased Price: $[/tex]2.50
- Initial Quantity: 250 slices
- New Quantity: 250 slices
The price increases from [tex]$2.00 to $[/tex]2.50, but the quantity demanded remains the same at 250 slices. This scenario does not follow the law of demand, as the quantity demanded should decrease with an increase in price.
4. Scenario 4:
- Initial Price: [tex]$1.50
- Increased Price: $[/tex]2.25
- Initial Quantity: 150 slices
- New Quantity: 175 slices
The price increases from [tex]$1.50 to $[/tex]2.25, and the quantity demanded increases from 150 slices to 175 slices. This scenario also contradicts the law of demand, as an increase in price should lead to a decrease in quantity demanded.
Only Scenario 1 demonstrates the law of demand correctly. As the price increased, the quantity demanded decreased.
Therefore, the correct answer is:
Scenario 1 correctly demonstrates the law of demand.
