The law of demand assumes that as the price of a good increases,
a. people recognize that its price may be even higher in the future, so they buy now rather than later
b. consumers tend to shift their purchases to relatively cheaper substitutes
c. people will buy less of it in the hope that the good will be cheaper in the future
d. the consumer's money income increases, and he or she is less able to buy all goods, including the good whose price has increased
e. the consumer's money income decreases, and if the product is a normal good, more will be purchased
B
You might also like to view...
You are the owner of an art supply store, selling both paint and paintbrushes. In order to maximize total sales you should
a. Decrease the price on the paint only b. Decrease the price on paintbrushes only c. Decrease the price on both the paint and the paintbrushes d. Increase the price on both the paint and the paintbrushes
If the shopkeeper goes first and quotes a high price, what is the best response of the customer?
a. Accept the high price b. Yell at the store owner c. Walk away from the deal d. Swear off shopping forever