If price falls, what happens to the demand for a product?
a. It increases.
b. It decreases.
c. It does not change.
d. Uncertain--economic theory has no answer to this question.
C
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The role of government in a market economy includes all of the following except
a. providing services such as national defense. b. collecting taxes. c. extensive ownership of productive resources. d. making and enforcing laws.
If supply is upward-sloping and demand is downward sloping, what happens to the equilibrium real, risk-free interest rate and quantity of real loanable funds per time period if there is a decrease in government deficits:
a. The real risk-free interest rate rises and the quantity per time period falls. b. The real risk-free interest rate rises and the quantity per time period rises. c. The real risk-free interest rate falls and the quantity per time period falls. d. The real risk-free interest rate falls and the quantity per time period rises. e. The real risk-free interest rate falls and the quantity per time period is uncertain.