In a Free Market, the Relationship Between Price and Quantity

question 127

Multiple Choice

In a free market, the relationship between price and quantity demanded of a good can be called:

• A) supply and demand
• B) the law of demand
• C) the law of supply
• D) market demand

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Definitions:

Vertical Hierarchy

An organizational structure where power and decision-making authority flow from the top down through various levels of management.

Division of Labor

Refers to the allocation of tasks among a set of individuals or groups within an organization, aimed at improving efficiency and productivity.

Boundary-Spanning Subsystem

Components of an organization that interact with the external environment to obtain inputs and distribute outputs, facilitating the exchange of information and resources.

Management and Labor

The two key groups in a workplace, where management is responsible for making decisions and directing operations, and labor refers to the workforce that executes tasks under management's direction.