The Law of Demand States That, Other Things Remaining the Same

question 73

Multiple Choice

The law of demand states that, other things remaining the same,

• A)the higher the price of a good, the smaller is the quantity demanded.
• B)the higher the price of a good, the smaller is the quantity supplied.
• C)price and quantity supplied are positively related.
• D)as income increases, willingness to pay for the last unit increases.
• E)the higher the price of a good, the greater is the quantity demanded.

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Definitions:

Liable

Legally responsible or obligated, often in the context of paying compensation for harm or damage.

Damaged

Refers to items or property that have been harmed or adversely affected, usually reducing their value or functionality.

Merchant

An individual or business involved in the wholesale purchase or retail sale of goods for profit.

Non-necessary Item

Refers to goods or services that are not essential for survival or basic living and are often categorized as luxury or discretionary purchases.