The law of demand states that
A. scarcity can never be solved.
B. when the price of a product falls, people buy more of it.
C. prices will continue to rise as long as the population grows.
D. supply creates its own demand.
Answer: B
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The practice of a firm setting a price so low that all firms incur losses is called
a. a tournament. b. predatory pricing. c. a buy-out strategy. d. a contestable market.
Which of the following would increase the unemployment rate?
A) an increase in unemployment insurance payments B) a law making it illegal to work more than 35 hours per week C) a cut in unemployment compensation D) a decrease in the minimum wage
During the financial crisis of 2008, which company did not receive a loan from the Fed?
a. J. P. Morgan b. General Electric c. American International Group d. Bank of America
Other things being constant, the only way to move along a given supply curve for a product is for
A) the product's relative price to change. B) the future relative price of related goods to change. C) the number of sellers to change. D) technological changes to occur.