Which of the following events illustrates the law of demand: Other things remaining the same, a rise in the price of a good will ________
A. decrease the quantity demanded of that good
B. increase the demand for a substitute of that good
C. decrease the demand for the good
D. increase the demand for a complement of that good
A The law of demand is the inverse relationship between the price of a good and the quantity demanded.
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Largescale immigration into the New World, between 1870 and 1913 caused the real wages to:
a. decrease in comparison with Europe. b. increase at a slower pace in comparison with Europe. c. increase at a higher pace in comparison with Europe. d. stay constant.
One problem with unrestricted global capital movements is that capital suppliers may
a. have little information about conditions overseas b. react quickly to bad news regardless of economic fundamentals c. be interested in short-run gains rather than development objectives d. all of the above