When Economists Say That the Demand for a Product Has

question 215

Multiple Choice

When economists say that the demand for a product has increased, they mean that:

• A)consumers are now willing to purchase more of this product at each possible price.
• B)the product has become particularly scarce for some reason.
• C)the product price has fallen and as a consequence consumers are buying a larger quantity of the product.
• D)the demand curve has shifted to the left.

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Definitions:

Legislation

Laws or statutes enacted by a government's legislative body.

Limited Partnership Agreement

A contract among partners in which some are liable only up to the amount of their investments while others are fully liable.

Limited Partners

Investors in a limited partnership who contribute capital but do not participate in management and whose liability for the partnership's debts is limited to their investment.

General Partners

Individuals in a partnership who share unlimited personal liability for the debts and obligations of the business, and who typically take part in managing the operations of the partnership.