According to the law of demand, other things equal, when the price of a good or service falls, demand increases

The Smoot-Hawley Tariff

A) raised average tariff rates by over 50 percent in the United States in 1930. B) was passed by the U.S. Congress following the Civil War as a means of increasing government revenue. C) was passed by the U.S. Congress upon a recommendation made by the General Agreement on Tariffs and Trade (GATT) in 1948. D) lowered U.S. tariffs by 50 percent following World War II.

How does a person's perception of whether a good is a necessity or a luxury affect his or her purchases of it?

(A) People will not purchase necessities if the price increases. (B) A good that is perceived as a necessity will be purchased even if the price rises. (C) People who have a lot of money will buy goods even if they think they are a luxury. (D) A good that is perceived as expensive will no longer be considered a necessity.