You own a fresh vegetable stand. Last week you decided to raise your carrot prices from 79 cents per bunch to 99 cents per bunch. Subsequently, you noticed that several of your regular customers were buying 2 bunches instead of their usual one. In fact, your carrot sales had gone up appreciably. When you finally asked one of your customers why she was buying so many carrots, she replied, “My neighbor told me that you had recently raised your price because carrots were in short supply, and that I ought to stock up before you ran out.”
Does this contradict the law of demand? Why or why not? Justify your answer.
Anyone familiar with economics?