The Law of Demand states that, other things being constant, when the price of a good increases then:
(a) Demand decreases.
(b) Demand increases.
(c) The quantity demanded decreases.
(d) The quantity demanded increases.
Answer: (c) The quantity demanded decreases.
You might also like to view...
If the demand for farm products is income elastic, that would mean that farm products were a necessity
Indicate whether the statement is true or false
A person who practices poisonous snake charming and does not reveal this to her health insurance company before purchasing insurance is an example of
A) moral hazard. B) adverse selection. C) signaling. D) screening.
All of the following affect the demand for labor by a firm except
A. the amount of labor that will be supplied at different wages. B. the level of demand for the firm's products. C. the marginal physical product of the labor. D. the marginal revenue the firm receives for its products.
The position of the long-run aggregate supply curve corresponds to the economy's:
A. full-employment real GDP. B. maximum possible level of employment. C. natural level of personal consumption expenditure. D. maximum possible level of personal consumption expenditures.