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Questions and Answers
What happens to quantity demanded when price increases, according to the law of demand?
Which of the following factors does NOT affect the demand for a product?
If the price of smartphones decreases, what is likely to happen to the demand for smartphone cases?
Study Notes
Law of Demand
- When price increases, quantity demanded decreases, ceteris paribus (all other things being equal).
Factors Affecting Demand
- Several factors can affect the demand for a product, but one factor that does not affect demand is a change in the price of the same product.
Price of Complementary Goods
- If the price of a complementary good (e.g., smartphones) decreases, the demand for another complementary good (e.g., smartphone cases) is likely to increase.
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Description
Test your understanding of the law of demand with this quiz. Learn about the relationship between price and quantity demanded, and identify factors that do not affect product demand. See how changes in price can impact the demand for related products.
