When the Price of a Good Increases, Demand for the Good

question 176

Multiple Choice

When the price of a good increases, demand for the good will:

• A) increase.
• B) decrease.
• C) be unaffected.
• D) depend on the corresponding change in supply.

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Definitions:

Oral Agreement

An agreement made through spoken communication between parties, which can be legally binding even in the absence of a written document in some cases.

Partial Payment

A payment that covers only a portion of the total amount due on a debt, bill, or other financial obligation.

Statute of Frauds

A legal principle requiring certain types of contracts, such as those concerning real estate or lasting more than a year, to be in writing to be enforceable.

Sale of Land

The process of transferring ownership of a parcel of real estate from one party to another, typically involving a written contract and the payment of an agreed-upon price.