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Questions and Answers
What happens to the quantity demanded when the price of a good increases?
What happens to the quantity demanded when the price of a good increases?
- The quantity demanded increases
- The quantity demanded remains the same
- The quantity demanded decreases (correct)
- The quantity demanded fluctuates
How does a decrease in consumer income affect the demand for normal goods?
How does a decrease in consumer income affect the demand for normal goods?
- The demand decreases (correct)
- The demand remains the same
- The demand becomes elastic
- The demand increases
What is the relationship between price and quantity demanded in a perfectly competitive market?
What is the relationship between price and quantity demanded in a perfectly competitive market?
- No relationship
- Inverse relationship (correct)
- Direct relationship
- Indirect relationship
