According to the law of demand, when the price of a good falls
A. the quantity of the good supplied will decrease to meet the decreased demand.
B. the quantity of the good supplied will increase to meet the increased demand.
C. the quantity of the good demanded tends to fall.
D. the quantity of the good demanded tends to rise.
Answer: D
You might also like to view...
"Crowding out" refers to federal government deficits financed by:
a. borrowing which increases interest rates and thereby reduces private spending. b. increasing taxes which reduces private spending. c. the federal government buying foreign debt which reduces the amount of government spending and government programs. d. reducing government spending which reduces interest rates.
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and high inflation. C. high economic growth and low inflation. D. low economic growth and low inflation.
Which of the following is the best example of an adverse selection problem?
A. When a firm pollutes the air, families living nearby suffer the consequences. B. Once individuals are insured, they are less likely to take efficient precautions. C. Individuals are unlikely to pay for something if they can receive the benefits for free. D. Individuals who seek to purchase health insurance have better information about their health than do insurance companies.
The Snowshoe Inn in Vermont charges $259 per room during the winter ski season and $149 during the summer months. The number of rooms available and the operating costs for the inn remain constant throughout the year. What is indicated by these prices?
A. The demand curve shifts out in the summer. B. The demand curve shifts out during the winter months. C. The supply curve shift in during the summer. D. There is a decrease in demand during the winter.