The law of demand shows that there is

A) an inverse relationship between price and profit.
B) an inverse relationship between price and resource cost.
C) an inverse relationship between price and quantity demanded.
D) a direct relationship between price and quantity demanded.


Answer: C

Economics

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The greater your discount weight, the more your current decisions are driven by the future consequences of your actions. Do you agree? Explain

What will be an ideal response?

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When hiring additional workers, a firm operating in a perfectly competitive labor market will

A) have to offer higher wages to hire additional workers, but the old workers do not get the higher wage. B) have to offer higher wages to hire additional workers, and the old workers will also receive the new, higher wage. C) be able to hire additional workers without offering higher wages. D) be able to hire additional workers at lower wages because the new workers have been unemployed.

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A decrease in the price level leads to which of the following sequences?

a. The money demand curve shifts leftward, the interest rate drops, the aggregate expenditure line shifts upward, and there is movement downward along the aggregate demand curve. b. The money demand curve shifts rightward, the interest rate increases, the aggregate expenditure line shifts downward, and there is movement upward along the aggregate demand curve. c. The money demand curve shifts leftward, the interest rate drops, the aggregate expenditure line shifts downward, and there is movement upward along the aggregate demand curve. d. The money demand curve shifts rightward, the interest rate increases, the aggregate expenditure line shifts upward, and there is movement downward along the aggregate demand curve. e. The money demand curve shifts leftward, the interest rate drops, the aggregate expenditure line shifts upward, and there is movement upward along the aggregate demand curve.

Economics