What is a basic principle of the law of demand?
a. The higher the price, the more people will want the good.
b. Everyone has a limited income that they will spend.
c. When a good's price is lower, people will buy more of it.
d. Services are of interest in the same way that goods are.
Answer: When a good's price is lower, people will buy more of it.
You might also like to view...
In July, market analysts predict that the price of gold will rise in August. What happens in the gold market in July, holding everything else constant?
A) The supply curve shifts to the right. B) The demand curve shifts to the left. C) The quantity demanded and the quantity supplied increase. D) The supply curve shifts to the left.
For computers and other business equipment, small changes in business earnings tend to generate relatively large short-run changes in the demand for this equipment, and the long-run income response tends to be smaller
Industries that face demand behavior of this type are known as: A) natural monopolies. B) cartels. C) cyclical industries. D) constant-cost industries.