An Important Assumption That Is Made When Constructing a Demand

question 245

Multiple Choice

An important assumption that is made when constructing a demand schedule is that

• A) only price and quantity matter in determining demand.
• B) people always want a certain amount of a product.
• C) demand is too important to be left to the economists.
• D) all other determinants of demand are held constant.
• E) demand has a positive slope.

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Definitions:

Advertising

A marketing communication that employs an openly sponsored, non-personal message to promote or sell a product, service or idea.

Fosters Competition

This term refers to the process or actions that stimulate rivalry among companies or entities, driving improvements in quality, innovation, and efficiency.

Brand Name

A name given by the maker to a product or range of products, especially a trademark.

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A concept in financial economics that suggests that asset prices fully reflect all available information, meaning investors cannot consistently achieve higher returns on a risk-adjusted basis.