Your friend tells you the following:
"The law of demand does not work ALL the time. For example, think about the demand for luxury cars (e.g., BMWs, Porshe, etc.). Demand for such cars increases when the price of the car increases."
Your friend is:
A) correct; luxury cars give people a higher status.
B) correct; luxury cars are superior goods.
C) wrong; aggregate demand is not the same as regular demand.
D) wrong; demand is not the same as quantity demanded.