Which of the Following Is True for the Law of Demand

question 151

Multiple Choice

Which of the following is true for the law of demand?

• A) Sellers increase the quantity of a good available as the price of the good increases.
• B) An increase in price results from false needs.
• C) There is an inverse relationship between the price of a good and the quantity of the good demanded.
• D) Prices increase as more units of a product are demanded.

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Definitions:

Future Cash Flows

Projected movement of money into and out of a business, essential for budgeting, financial planning, and investment analysis.

Future Cash Flows

The projected cash receipts and payments a company expects to incur over a certain period in the future.

Bond Ratings

Bond ratings are assessments made by credit rating agencies about the creditworthiness of a bond issuer, which affect the interest rates bonds carry.

Default Risk

The risk that a borrower fails to make the promised loan or bond repayments to the lender or bondholders.