"As the Price of Apples Goes Up,the Demand for Apples

question 28

Multiple Choice

"As the price of apples goes up,the demand for apples goes down." The author of this statement

• A) implies that price and demand are unrelated.
• B) uses the word "demand" when he should use the word "supply."
• C) uses the word "demand" when he should use the words "quantity demanded."
• D) implies that demand and price have a direct relationship.

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Definitions:

Laggards

Consumers who like to avoid change and rely on traditional products until they are no longer available.

Trialability

The extent to which a product can be tested or used on a limited basis before making a purchase decision.

Diffusion

is the process through which an innovation is communicated through certain channels over time among the members of a social system, typically illustrating how new products, ideas, or practices spread within a population.

Compatibility

The capability of two or more systems to operate in unison without conflict or error.