The law of demand is based on the observation that
A) people buy less of a product when the product becomes less fashionable.
B) people buy more of a product when its price falls.
C) people are indifferent to price changes.
D) people always want more than they need.
Answer: B
You might also like to view...
When comparing perfect competition and monopolistic competition, we find that
A) firms in monopolistic competition produce identical products just as do firms in perfect competition. B) firms in monopolistic competition face barriers to entry, unlike firms in perfect competition. C) advertising plays a large role in monopolistic competition, unlike in perfect competition. D) firms in monopolistic competition are price takers just as is the case for firms in perfect competition.
One point virtually all economists agree on when defining money is that: a. money must be spendable
b. money must be liquid. c. money must be accepted as payment. d. all of the above are correct.
One way that the government encourages the production of a good with positive externalities is to offer
A) an effluent fee. B) a market to pollute. C) a subsidy. D) a pollution tax.
Why are reserves listed in the assets column of a bank’s balance sheet?
What will be an ideal response?