What is the Law of Demand
What will be an ideal response?
The law of demand is the rule that, holding everything else constant, when the price of a product falls, the quantity of the product demanded will increase, and when the price of a product rises, the quantity of the product demanded will decrease.
You might also like to view...
In his concept of “the invisible hand,” Adam Smith explains that
A. if each person looks out for himself or herself, then chaos will inevitably ensue. B. the pursuit of self-interest promotes economic well-being for society as a whole. C. governmental rule actually results in greater good than is apparent at the time. D. traditional religion is an appropriate guide for human behavior. E. All of the responses are correct.
Refer to the figure above. Given the consumer's budget constraint, the consumption bundle that maximizes his satisfaction consists of:
A) 0 shirts and 40 pairs of trousers. B) 10 shirts and 30 pairs of trousers. C) 20 shirts and 15 pairs of trousers. D) 35 shirts and 10 pairs of trousers.
During the course of a week, McDonald's has enough time to hire or layoff workers, but it does not have enough time to expand its kitchen or add an additional seating area. In this situation, McDonald's:
A. has no fixed costs. B. is in the short run. C. suffers an economic loss. D. earns a large profit.
Refer to the above figure. S1 is the supply curve that includes only private costs. S2 is the supply curve that includes social costs. The free market rate of output is ________ and the corrected, socially optimal amount of output is ________.
A. Q4; Q1 B. Q2; Q1 C. Q2; Q4 D. Q4; Q2