If Price of a Good Rises, What Happens to the Demand

question 134

Multiple Choice

If price of a good rises, what happens to the demand for that good, all other things held constant?

• A)The demand increases.
• B)The demand decreases.
• C)The demand does not change.
• D)The outcome depends upon the supply of the good.

---

Definitions:

Modus Ponens

A valid form of argument in which if a conditional statement ("if P then Q") is accepted, and P is asserted to be true, then Q necessarily follows.

Modus Tollens

A logical argument form where the contrapositive of a premise is used to infer the negation of the hypothesis.

Hypothetical Syllogism

A logical argument composed of two conditional statements and a conclusion, based if the first premise is true, then the second one follows.

Modus Ponens

A valid form of argument in which if a conditional statement (“if p then q”) and its antecedent (“p”) are true, then the consequent (“q”) is also true.