Question

Explain why the law of demand is not violated when you observe the quantity demanded of ice cream cones at your local park is lower in December than in July even though the price is higher in July than it is in December.

Answer 1

For answering this firstly we need to understand the difference between demand and quantity demanded

When the only factor present is price then there is change in the quantity demanded

If more than the price factors are present like income level of a consumer, expectation level of consumer, taste and preferences, then this causes a shift of whole demand curve

As we know that according to law of demand if other things are held constant in price and quantity demanded inversely related which means if price increases the quantity demanded will decrease and vice versa

But here in the given question according to the statement people in the winter season prefer eating less icecream due to many reasons like maybe getting cough for having simple cold

Hence the factor present is a preference of the consumer which is one of factor that causes change in demand and due to this law of demand is not violated