Larger amount is actually purchased at a higher price

Question

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.”

Answer 1

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.