The Law of Demand Quiz

It describes no correlation between price and demand

It describes a positive correlation between price and demand

It describes a negative correlation between price and demand (correct)

It describes an erratic correlation between price and demand

As price decreases, demand increases

As price increases, demand decreases (correct)

As price increases, demand increases

As price decreases, demand decreases

Consumers buy less of a good when its price decreases and more when its price increases

Consumers buy more of a good regardless of its price

Consumers buy less of a good regardless of its price

Consumers buy more of a good when its price decreases and less when its price increases (correct)

<p>The law of demand states that there is an inverse relationship between the price of a good and the quantity demanded, meaning that as the price of a good increases, the quantity demanded decreases, and vice versa.</p> Signup and view all the answers

<p>The law of demand suggests that as the price of a good increases, the quantity demanded decreases, and as the price of a good decreases, the quantity demanded increases.</p> Signup and view all the answers

<p>The law of demand describes the relationship between demand and price as inverse, meaning that as the price of a good rises, the quantity demanded falls, and when the price falls, the quantity demanded rises.</p> Signup and view all the answers