The Figure Given Below Represents the PPC in Two Nations

question 93

Multiple Choice

The figure given below represents the PPC in two nations - Germany and Korea, producing only two goods, cars and food.Figure 2.4

-Which of the following statements correctly defines the law of demand?

• A)The lower the price of a commodity, the lower the quantity demanded of that commodity.
• B)As the price of a commodity increases, the quantity demanded of that commodity also increases.
• C)The lower the price of a commodity, the greater the quantity demanded of that commodity.
• D)The lower the price of a commodity, the greater the quantity supplied of that commodity.
• E)The quantity demanded of a particular good decreases with an increase in the price of a substitute good.

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Definitions:

Nordstrom Rack

A retail division of Nordstrom, Inc. that sells clearance and off-season branded clothing and accessories at a reduced price.

Off-price Retailer

is a type of retailer that offers high-quality goods at lower prices than those of conventional retailers by buying overstocked or out-of-season items from manufacturers.

Full-line Discount

Retailers that offer a wide range of products from various categories at discounted prices, aiming to be a one-stop shop for consumers.

General Merchandise

Refers to a broad category of products that are sold by retailers, including household goods, apparel, and automotive products, among others.