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The Law of Demand states that the demand for a product is inversely related to the price of such product. Therefore, the demand for a product is considered downward sloping. This implies that quantity demanded increases when price decreases. Is this always true?
In your answer, provide at least three examples of products for which quantity demanded remains unchanged regardless of a change in price. Also, provide at least three examples of products for which quantity demanded increasesin response to an increase in price. Also, include a discussion of the factors of demand that may account for such examples and justify your conclusions.
In 1981, the United State negotiated an contract with the Japanese. The contract called for Japanese auto companies to limit exports to the United State.
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