The Law of Demand Implies, Holding Everything Else Constant, That

question 162

Multiple Choice

The law of demand implies, holding everything else constant, that as the price of lemonade________.

• A)increases, the demand for lemonade will increase.
• B)increases, the quantity of lemonade demanded will increase.
• C)decreases, the quantity of lemonade demanded will increase.
• D)decreases, the demand for lemonade will increase.

---

Definitions:

Consumer Spending

The total amount of money spent by households and consumers on goods and services.

Transportation

Transportation refers to the movement of goods and people from one location to another through various means including road, rail, air, and sea.

Food And Beverages

Products that encompass all consumables (foods and drinks) prepared for human consumption.

CPI

This index, known as the Consumer Price Index, evaluates the price variation of a diversified basket of consumer goods and services, factoring in food, transport, and healthcare, by employing a weighted average method.