The law of demand refers to the:
A. inverse relationship between the price of a good and the quantity of a good that people are willing to buy.
B. price increase that results from an increase in demand for a good of limited supply.
C. inverse relationship between the price of a good and the quantity offered for sale.
D. increase in the quantity of a good available when its price increases.
Answer: A
You might also like to view...
You like bundle A better than bundle B, and bundle C is an average between A and B. If your tastes satisfy convexity, then C is at least as good as A and as B.
Answer the following statement true (T) or false (F)
Assume that coal is a normal good. If the price of coal increases and the quantity sold increases, which of the following is consistent with these observations?
What will be an ideal response?
Refer to the figure. Profit for the single-price monopoly in this diagram is ______, and under perfect price discrimination, profit is ______.
Fill in the blank(s) with the appropriate word(s).
Suppose aggregate demand in the economy sharply declines. Mainstream economists say that the price level (at least for a time) will _______ and real output will _________
A. decrease; remain constant B. increase; remain constant C. remain constant; decrease D. remain constant; increase