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</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</p> Signup and view all the answers