The Law of Demand Implies That

question 26

Multiple Choice

The law of demand implies that:

• A) consumers are not responsive to price changes.
• B) consumers will, all other things unchanged, buy more at lower prices.
• C) sellers will, all other things unchanged, offer more on the market at higher prices.
• D) sellers will, all other things unchanged, offer less on the market at lower prices.

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Definitions:

Outcome Probabilities

The likelihoods associated with the possible outcomes of a random process or experiment.

Intuitive Judgment

The process of making a decision or reaching a conclusion based on what feels naturally right without explicit reasoning.

Objective Fact

Information verified to be true, independent of personal feelings or opinions.

Equal Alternatives

Options presented in a situation that are considered to have the same value or importance, allowing for a choice without preference.