What is meant by the law of demand?A. An inverse relationship between the price of a product and the quantity demanded, ceteris paribus B. Demand that is dependent on both price and non-price factors, ceteris paribusC. As income increases, demand will also increase, ceteris paribusD. A proportional relationship between the price of a product and the quantity demanded, ceteris paribus
Question
What is meant by the law of demand?A. An inverse relationship between the price of a product and the quantity demanded, ceteris paribus B. Demand that is dependent on both price and non-price factors, ceteris paribusC. As income increases, demand will also increase, ceteris paribusD. A proportional relationship between the price of a product and the quantity demanded, ceteris paribus
Solution
The law of demand refers to option A. It is an economic principle that describes an inverse relationship between the price of a product and the quantity demanded, ceteris paribus. This means that as the price of a product increases, the demand for that product decreases, assuming all other factors remain constant. Conversely, if the price of a product decreases, the demand for that product increases, again assuming all other factors remain constant. This is a fundamental concept in economics that helps to explain consumer behavior and market dynamics.
Similar Questions
The "law of demand" implies thatA.as prices fall, demand increases.B.as prices rise, quantity demanded increases.C.as prices rise, demand increases.D.as prices fall, quantity demanded increases.
According to the law of demand there is ________ relationship between price and quantity demanded.A.a constantly changingB.a positiveC.either a positive or negativeD.a negative
Law of demand
The law of demand asserts that reducing the price of a good will cause:A.the supply of the good to increase.B.the demand for the good to increase.C.the supply of the good to decrease.D.the demand for the good to decrease.
What does the law of demand suggest?A.Sellers increase their supply of a product as its price increases.B.Buyers increase their demand for a product as its price increases.C.Buyers increase their demand for a product as its price decreases.D.Sellers increase their supply of a product as its price decreases.SUBMITarrow_backPREVIOUS
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