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Law of demand

31 bytes removed, 22:03, 21 September 2011
Independent shifts of the demand curve
| What happens from an observer's viewpoint || both the equilibrium price (i.e., [[market price]]) ''and'' the quantity demanded at that price increase.
| Mistaken argument that this contradicts the law of demand || <toggledisplay>The law of demand claims that as the price increases, the quantity demanded decreases. But here, the price and quantity demanded are both increasing.</toggledisplay>
| Reason why the argument is mistaken || The increase in price as well as increase in quantity demanded are caused by a change in an [[exogenous parameter]], which causes the demand curve to shift outward.
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