Law of Demand and Expectations Quiz

The Law of Demand states that, all else being equal, as the price of a good increases, the quantity demanded decreases; and as the price of a good decreases, the quantity demanded increases.

Expectations about future prices or income can influence current demand, even if there is no change in actual prices or income.

When the price of a good decreases, the quantity demanded increases, ceteris paribus.

<p>An increase in price leads to a decrease in quantity demanded, all else being equal.</p> Signup and view all the answers