Suppose All Prices Decrease by 5 Percent in the Year

Multiple Choice

Suppose all prices decrease by 5 percent in the year while the total sales of laptops remain constant. This is

A) a violation of the law of demand since fewer laptops should be purchased at a higher price.
B) a violation of the law of demand since more laptops should have been purchased with higher incomes.
C) not a violation of the law of demand since the relative price of laptops did not change.
D) not a violation of the law of demand since the law of demand does not apply to expensive goods like laptops.