The law of demand refers to the a decrease in price that can be expected as

The law of demand refers to the a decrease in price

  • Green River College
  • ECON 202
  • Test Prep
  • yuneehahm
  • 272
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20.The law of demand refers to thea.decrease in price that can be expected as more units of a product are demanded.b.increase in price that results from an increase in demand for a good of limited supply.c.inverse relationship between the price of a good and the quantity demanded.d.increase in the quantity of a good available when its price increases.ANS:CPTS:1DIF:EasyNAT:BUSPROG: AnalyticSTA:DISC: Supply and demandTOP:Consumer Choice and the Law of DemandKEY:Bloom's: Knowledge21.In economics, the demand for a good refers to the amount of the good peoplea.would like to have if the good were free.b.are willing to buy at various prices.c.need to achieve a minimum standard of living.d.will buy at alternative income levels.ANS:BPTS:1DIF:EasyNAT:BUSPROG: AnalyticSTA:DISC: Supply and demandTOP:Consumer Choice and the Law of DemandKEY:Bloom's: Knowledge22.The law of demand refers to thea.inverse relationship between the price of a good and the willingness of consumers to buy it.b.price increase that results from an increase in demand for a good of limited supply.c.inverse relationship between the price of a good and the quantity offered for sale.d.increase in the quantity of a good available when its price increases.ANS:APTS:1DIF:ModerateNAT:BUSPROG: AnalyticSTA:DISC: Supply and demandTOP:Consumer Choice and the Law of DemandKEY:Bloom's: Knowledge23.The law of demand indicates thata.every physical good has a use.b.when people want a good badly enough, they will find a way to pay for it.c.the desire for a good is unrelated to its price.d.the quantity of a good that people will buy is inversely related to the price of the good.ANS:DPTS:1DIF:ModerateNAT:BUSPROG: AnalyticSTA:DISC: Supply and demandTOP:Consumer Choice and the Law of DemandKEY:Bloom's: Knowledge24.How will consumers generally react to an increase in the price of butter?
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a.They will purchase a larger quantity of butter.b.They will substitute other goods like margarine for the more expensive butter.c.They will reduce their purchases of substitute goods like margarine.d.They will continue purchasing the same quantity of butter at the higher price.ANS:BPTS:1DIF:EasyNAT:BUSPROG: AnalyticSTA:DISC: Supply and demandTOP:Changes in Demand Versus Changes in Quantity DemandedKEY:Bloom's: Application
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