The Law of Demand Refers to The

question 22

Multiple Choice

The law of demand refers to the:

• A)​negative relationship between the price of a good and the willingness of producers to sell it.
• B)​price increase that results from an increase in demand.
• C)​inverse relationship between the price of a good and the quantity demanded.
• D)​increase in the quantity of a good made available when its price increases.

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Definitions:

X-Coordinate

The horizontal value in a pair of coordinates that indicates a point's location on a two-dimensional graph.

Circular-Flow Diagram

The circular-flow diagram is an economic model illustrating the flow of goods and services, income, and payments between households and businesses in an economy.

Simple Economy

An abstract economy with few components, simplifying analysis of economic principles.

Households

The basic economic units consisting of all individuals who live together and make joint decisions on consumption and labor supply.