Which of the following statements correctly defines the law of demand?
a. The lower the price of a commodity, the lower the quantity demanded of that commodity.
b. As the price of a commodity increases, the quantity demanded of that commodity also increases.
c. The lower the price of a commodity, the greater the quantity demanded of that commodity.
d. The lower the price of a commodity, the greater the quantity supplied of that commodity.
e. The quantity demanded of a particular good decreases with an increase in the price of a substitute good.
c
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A tax on sellers usually causes buyers to pay more for the good and sellers to receive less for the good than they did before the tax was levied
a. True b. False Indicate whether the statement is true or false
Since the end of the war in the Persian Gulf, the world price of oil has fallen. But in some areas, consumers have seen little relief at the pump. This phenomenon can be explained by the theory of:
A. oligopoly. B. perfect competition. C. monopolistic competition. D. monopoly.
Why is the interest rate such an important price in the economy?
What will be an ideal response?
When dealing with negative externalities, government action is required
A) only if transactions cost are low. B) for any bargain to be successful. C) only in environmental disputes. D) only if transactions costs preclude bargaining between polluter and victim.