Larger amount is actually purchased at a higher price
Critically evaluate: “In comparing the two equilibrium positions, it note that a larger amount is actually purchased at a higher price. This disprove the law of demand.”
Expert
The key point here is that the second equilibrium occurs after demand has increased, that is demand has shifted. Every equilibrium price describes a different demand situation. Therefore, the fact that more is purchased at a higher price when demand increases does not refute the law of demand. Note that on the second demand curve and schedule, more would still be purchased at a lower price.
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