Summarize how the law of demand explains the effects of price on the quantity demanded
What will be an ideal response?
The law of demand says that when a good's price is lower, consumers will buy more of it. When the price is higher, consumers will buy less of it.Demand is the desire to own something and the ability to pay for it. To have demand for a good or service, both of these conditions must be present.
The law of demand says that when a good's price is lower, consumers will buy more of it. When the price is higher, consumers will buy less of it.Demand is the desire to own something and the ability to pay for it. To have demand for a good or service, both of these conditions must be present.
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Central planners in command economies
a. generally set production targets for firms. b. always consult consumers on the output of goods they want to consume. c. allow prices to organize the economy's production. d. depend upon the invisible hand to coordinate economic activities.
According to classical economists,
A) spending equals saving. B) saving equals income. C) income equals wealth. D) none of the above
The marginal revenue curve for a monopolist is
A. horizontal. B. U-shaped. C. the same as its demand curve. D. downward sloping.
Since 1970, the U.S. economy has experienced two
A. recessions. B. periods of high inflation. C. deflations. D. all of the above.