The Law of Demand States That the Quantity Demanded of a Good

question 68

Multiple Choice

The law of demand states that the quantity demanded of a good is inversely related to the price of that good. Therefore, as the price of a good goes:

• A) up, the quantity demanded also goes up.
• B) up, the quantity demanded goes down.
• C) down, the quantity demanded goes down.
• D) down, the quantity demanded stays the same.

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Definitions:

Automatic Egotism

The subconscious bias towards favoring oneself over others, often manifesting in self-serving attributions.

Social Comparison

The process of evaluating oneself by comparing with others.

Self-Enhancement Motive

The desire to maintain, increase, or enhance one's positive self-view.

Appraisal Motive

The desire to find out why things happen and what the causes of events are, often related to understanding one's own emotional responses.