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Law of demand and supply

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In the aftermath of September 11 terrorist attacks, the quantity of sold airline tickets in 2002 fell by a large percentage when compared to 2001. During the same time period the average price for airling tickets also fell. The law of demand states that "the quantity demanded of a good varies inversely with its price. Does the observed change in the purchase and price of airline tickets violate the law of demand? why or why not?

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The law of demand states that "the quantity demanded of a good varies inversely with its price". This means that as the quantity demanded decreases, the price level of the item in question ...

Solution Summary

In the aftermath of September 11 terrorist attacks, the quantity of sold airline tickets in 2002 fell by a large percentage when compared to 2001. During the same time period the average price for airling tickets also fell. The law of demand states that "the quantity demanded of a good varies inversely with its price. Does the observed change in the purchase and price of airline tickets violate the law of demand? why or why not?

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