Define the law of demand and explain how this relates to typical human behavior.
What will be an ideal response?
The law of demand says that the quantity of a good demanded in a given time period increases as its price falls, ceteris paribus. Typically people respond to price when buying a good. People are usually willing to buy more of a good at a lower price.
Economics
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The primary reason why a monopoly can make a long-run economic profit is the existence of
A) barriers to entry. B) inelastic demand. C) price discrimination. D) many buyers.
Economics
Firms might vertically disintegrate when
A) it becomes more profitable for a firm to specialize. B) the IRS cracks down on transfer pricing. C) the industry becomes too large to support itself. D) the industry shrinks in size.
Economics