Multiple Choice QuestionOther things equal, the demand for a resource shows Blank______ between the price of the resource and the quantity of the resource demanded.Multiple choice question.an inverse relationshipa direct relationshipno relationship
Question
Multiple Choice QuestionOther things equal, the demand for a resource shows Blank______ between the price of the resource and the quantity of the resource demanded.Multiple choice question.an inverse relationshipa direct relationshipno relationship
Solution
The correct answer is "an inverse relationship". This is because, all other things being equal, as the price of a resource increases, the quantity of the resource demanded tends to decrease, and vice versa. This is a basic principle of economics known as the law of demand.
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