According to the "Law" of Demand, We Would Expect

question 60

Multiple Choice

According to the "law" of demand, we would expect

• A)the demand curve to be negatively sloped.
• B)the demand curve to be positively sloped.
• C)the total quantity demanded by the market to move in the same direction as price.
• D)marginal utility to increase as quantity demanded increases.

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Definitions:

Income

is the money received by individuals or entities, typically in the form of wages, salaries, rent, interest, dividends, or profits, for providing labor, capital, or resources.

Aggregate Expenditure Line

The aggregate expenditure line is a graphical representation in macroeconomics that shows all planned expenditures of an economy at different levels of income or GDP, indicating total spending on goods and services in an economy.

Aggregate Demand Curve

A graph that represents the total demand for all goods and services in an economy at various price levels.

Aggregate Expenditure

Aggregate expenditure is the total amount spent on goods and services in an economy at a given overall price level and in a given time period.