When Moving Along a Market Demand Curve, the Prices of Related

question 17

Multiple Choice

When moving along a market demand curve, the prices of related goods are assumed to be constant. With an aggregate demand curve,

• A) the assumption is meaningless because we are using a market basket for all goods and services.
• B) the prices of related goods have an inverse relationship.
• C) all goods are assumed to have the same price.
• D) the same assumption holds true.

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