Which of the Following Is an Example of the Law

question 244

Multiple Choice

Which of the following is an example of the law of demand?

• A)A decrease in the price of milk is followed by an increase in milk purchases.
• B)A decrease in the price of milk is followed by a decrease in milk purchases.
• C)An increase in the price of milk has no effect on the amount of milk purchased.
• D)The amount of milk purchased increases when the price is constant.

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Definitions:

Heuristics

Simple, efficient rules or guidelines used to make quick decisions or solve problems.

Intuitive Judgments

Decisions made quickly and without conscious reasoning, relying on gut feelings and automatic cognitive processes.

Quick

The ability to do something or the act of doing something with speed or within a short time frame.

Representativeness Heuristic

A cognitive shortcut that involves judging the probability of an event by comparing it to an existing prototype that already exists in our minds.