Econ002_ReadingQuiz1

Econ002_ReadingQuiz1 - The law of demand states that A....

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Sheet1 Page 1 The law of demand states that A. there is a direct positive relationship between relative price and quantity demanded. B. consumers will exhaust their incomes as they purchase goods and services at given absolute prices. C. at lower relative prices, a larger quantity of a good will be purchased than at higher relative prices. D. if the price of a good increases both relatively and absolutely, there will be no change in quantity demanded. ****************************************************************************************************************** 2. The demand curve is downward sloping since A. price is always constant. B. price and quantity have an inverse relationship. C. price and quantity have a direct relationship. D. demand is based on supply. ****************************************************************************************************************** 3. When the term "price" is used in the law of demand, price is referring to A. the dollar price of the good.
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Econ002_ReadingQuiz1 - The law of demand states that A....

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