The law of demand says that the lower the price, the
a. greater is the quantity demanded
b. greater is the demand for the good
c. smaller is the demand for the good
d. smaller is the quantity demanded
e. larger is the supply of the good
A
You might also like to view...
Which of the following is an assumption used when drawing a production possibilities frontier?
i. Human wants and desires are limited to what is available. ii. Only two goods are considered. iii. The level of technology is fixed and unchanging. A) ii only B) i and iii C) i only D) i, ii, and iii E) ii and iii
Suppose it takes Paul 3 hours to bake a cake and 2 hours to mow the lawn, and suppose it takes Tom 2 hours to bake a cake and 1 hour to mow the lawn. Which of the following statements is correct?
A. Paul has the absolute advantage in mowing the lawn. B. Paul has the absolute advantage in baking cakes. C. Paul has the comparative advantage in mowing the lawn. D. Paul has the comparative advantage in baking cakes.