When Used in a Professional or Technical Sense, the Law

question 65

Multiple Choice

When used in a professional or technical sense, the law of supply and demand refers to

• A)some vague influences on economic affairs.
• B)the fact that prices go up when commodities are scarce.
• C)the market forces that show how prices and quantities are determined.
• D)the controls that regulate the amount of scarce goods that each consumer can purchase.

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Definitions:

Marginal Utility

The increase in happiness or usefulness experienced by a consumer when one more unit of a good or service is consumed.

Good A

A placeholder term that typically represents a general or unspecified item in economic models or discussions.

Good B

A term representing a specific product or service under consideration in an economic model or market analysis.

Marginal Utility

The increased fulfillment or advantage obtained by using one more unit of a good or service.