Law of Demand and Elasticity Quiz

• As the price of a good decreases, the quantity demanded increases, ceteris paribus
• As the price of a good decreases, the quantity demanded decreases, ceteris paribus
• As the price of a good increases, the quantity demanded decreases, ceteris paribus (correct)
• As the price of a good increases, the quantity demanded increases, ceteris paribus

• Price of the commodity, level of income, and taste & preferences of consumers
• Price of the commodity, price of related commodities, level of income, taste & preferences of consumers, and other factors (correct)
• Price of the commodity, level of income, and price of related commodities
• Price of the commodity, level of income, and government policies

• The price of related commodities and the demand for a particular commodity move in the same direction
• The price of related commodities has no impact on the demand for a particular commodity
• The price of related commodities and the demand for a particular commodity move in opposite directions
• The price of related commodities can influence the demand for a particular commodity (correct)

<p>Demand refers to the quantities of commodity that consumers are able to buy at each possible price during a given period of time, ceteris paribus (A)</p> Signup and view all the answers

<p>It means 'other things being equal' and is used to isolate the effect of a single variable (A)</p> Signup and view all the answers