The Law of Demand Shows That

question 31

Multiple Choice

The law of demand shows that:

• A) there is an inverse relationship between price and quantity demanded.
• B) the demand curve is positively sloped.
• C) when the price of a good increases, the quantity demanded increases.
• D) individual demand is the same as market demand.

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Definitions:

Privity Rule

A legal principle stating that contracts cannot confer rights or impose obligations upon any person who is not a party to the contract.

Gross Negligent Fraud

Extreme carelessness or reckless disregard for the truth or for the rights of others, often involving fraudulent intentions or outcomes.

Fraudulent Intent

The deliberate intention to deceive or cheat, often for personal gain or to cause loss to another.

Reasonably Foreseeable Users

Individuals who could be expected to use or be affected by a product or service, considered in legal and design considerations.