Which of the Following Best Represents the Law of Demand

question 344

Multiple Choice

Which of the following best represents the law of demand?

• A)As the price of a good decreases, the demand for the good increases.
• B)As the price of a good increases, the quantity demanded of that good decreases.
• C)As the demand for a good increases, the price of that good increases.
• D)As the price of a good decreases, the demand curve for that good shifts to the right.

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Definitions:

Chi-Square Test Statistic

A value calculated during a Chi-Square Test that measures the difference between observed and expected frequencies, used to assess the evidence against a null hypothesis.

One-Sample Test

A statistical test used to determine if the mean of a single sample differs significantly from a known or hypothesized population mean.

Variance

A measure of dispersion that represents the average of the squared differences from the mean.

P-Value

A statistical measure that helps researchers determine if their hypothesis is supported, indicating the probability of observing the obtained results, or more extreme, if the null hypothesis is true.