Which of the Following Most Correctly States the Law of Demand

question 237

Multiple Choice

Which of the following most correctly states the law of demand?

• A) As the price falls all other things unchanged, demand will go up.
• B) As the price goes up, all other things unchanged, demand will go down.
• C) As the price falls, all other things unchanged, the quantity demanded will go down.
• D) As the price falls, all other things unchanged, the quantity demanded will increase.

---

Definitions:

Encomienda System

A labor system in Spanish America granting colonists the right to demand tribute and forced labor from the indigenous inhabitants.

Tributary Indian Villages

Native American communities that were subjugated by colonial powers to pay tribute, either in goods or labor.

Conquistadors

The soldiers, explorers, and adventurers at the service of the Spanish and Portuguese Empires who established dominion over much of the Americas and Asia from the 15th to 17th centuries.

Voyages of Exploration

Expeditions undertaken from the late 15th century onwards by European powers to discover and map new lands, establishing trade routes and colonies.