The law of demand asserts that all else equal, if the price of a good ________, the quantity demanded of that good ________
A) stays the same; decreases
B) falls; decreases
C) rises; stays the same
D) falls; increases
E) None of the above is correct.
D
You might also like to view...
What is the optimal level of provision of a public good?
What will be an ideal response?
Suppose the demand curve for a product is represented by a typical downward-sloping curve. Now suppose the demand for this product decreases. Which of the following statements accurately predicts the resulting decrease in price?
A) The increase in price is not affected by the elasticity of the supply curve. B) The more elastic the supply curve, the smaller the price decrease. C) The decrease in price will always be proportional to the magnitude of the demand shift. D) The more elastic the supply curve, the greater the price increase.