What is a basic principle of the law of demand?
a. The higher the price, the more people will want the good.
b. Everyone has a limited income that they will spend.
c. When a good's price is lower, people will buy more of it.
d. Services are of interest in the same way that goods are.
Answer: When a good's price is lower, people will buy more of it.
You might also like to view...
Using estimates of past returns, which monthly investment is most likely to result in the largest amount of money at retirement for a person in the early 20s?
A) CDs B) Treasury bills C) stocks D) all of the above will result in a similar amount of money
In the long run, firms in a perfectly competitive market choose to produce a quantity:
A. that does not cover minimum average variable costs. B. where marginal costs are less than average variable costs. C. that earns zero economic profits. D. where ATC and AVC are at their minimum values.
Her marginal utility of her fifth scented candle would be
Table: Demand and Utility Schedules for packs of scented candles
A. $4.
B. $5.
C. $20.
D. $26.
Which of the following would one tend to see in a growing economy?
A. The supply curve for loans shifting to the left B. The quantity of loans falling C. The interest rate falling D. The demand curve for loans shifting to the right