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Questions and Answers
What does the law of demand state?
What does the law of demand state?
- Quantity demanded of a commodity is directly related to its price
- Demand for a commodity rises when its price rises
- Quantity demanded of a commodity is inversely related to its price (correct)
- Demand for a commodity rises when its price falls
In economics, what happens to the demand for a commodity when its price falls?
In economics, what happens to the demand for a commodity when its price falls?
- Demand decreases
- Demand becomes elastic
- Demand increases (correct)
- No change in demand
What factor would likely cause an increase in the demand for ice cream during summer?
What factor would likely cause an increase in the demand for ice cream during summer?
- Decrease in consumer income
- Warmer weather conditions (correct)
- Increase in winter season
- Rise in the price of ice cream
How does an increase in income affect the demand for inferior goods?
How does an increase in income affect the demand for inferior goods?
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What impact does a decrease in the price of laptops have on their demand?
What impact does a decrease in the price of laptops have on their demand?
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Which of the following scenarios would lead to an increase in the demand for umbrellas and raincoats?
Which of the following scenarios would lead to an increase in the demand for umbrellas and raincoats?
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How do complementary goods affect each other's demand when the price of one good decreases?
How do complementary goods affect each other's demand when the price of one good decreases?
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If there is a sudden rise in consumer preferences for organic food, what is likely to happen to the demand for traditionally grown produce?
If there is a sudden rise in consumer preferences for organic food, what is likely to happen to the demand for traditionally grown produce?
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