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Questions and Answers
According to the law of demand, what happens to the quantity consumers will buy as the price of a good decreases?
According to the law of demand, what happens to the quantity consumers will buy as the price of a good decreases?
- The quantity consumers will buy stays the same
- The quantity consumers will buy decreases
- The quantity consumers will buy is unpredictable
- The quantity consumers will buy increases (correct)
Which direction does the demand curve slope according to the law of demand?
Which direction does the demand curve slope according to the law of demand?
- Downward from right to left
- Upward from right to left
- Downward from left to right (correct)
- Upward from left to right
What is the relationship between the price of a good and the quantity consumers will buy according to the law of demand?
What is the relationship between the price of a good and the quantity consumers will buy according to the law of demand?
- No relationship
- Negative relationship (correct)
- Positive relationship
- Unpredictable relationship
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Study Notes
The Law of Demand
- As the price of a good decreases, the quantity that consumers are willing to buy increases.
- The demand curve slopes downward, indicating an inverse relationship between price and quantity demanded.
- There is an inverse relationship between the price of a good and the quantity that consumers will buy, meaning that as the price falls, the quantity demanded rises, and vice versa.
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