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ch 4 - C HAPTER 4 1 ,otherthingsconstant,thereis A B C D

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CHAPTER 4 1 The law of demand states that, other things constant, there is: A)  an inverse relation between price and the quantity demanded. B) an inverse relation between price and demand. C) a direct relation between price and the quantity demanded. D) a direct relation between price and demand. Feedback: The law of demand states that more of a good will be demanded the lower its price, other things constant, and less of a good will be demanded the higher its price, other  things constant. That is, there is an inverse relationship between price and quantity demanded. The relationship is between quantities demanded, not demand. Which of the following would likely result in an increase in the demand for beef? A) A decrease in the supply of beef. B) An increase in family incomes. C) An increase in the price of feed grains. D) A decrease in the price of pork. Feedback: A decrease in the supply of beef would result in a movement along a demand curve as the market price of beef rose. An increase in family incomes would increase the  demand for beef. An increase in the price of feed grains would shift the supply curve for beef to the left, resulting in lower market price for beef and a movement along the demand  curve for beef. A decrease in the price of pork would decrease the demand for beef.
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