Which of the Following Statements Best Illustrates the Law of Demand

question 15

Multiple Choice

Which of the following statements best illustrates the law of demand?

• A)When the price of pepperoni rises, the demand for pizza falls.
• B)When the weather gets hotter, the quantity demanded of ice cream rises.
• C)When the price of lemons falls, the demand for lemonade rises.
• D)When the price of eggs rises, the quantity demanded of eggs falls.

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Definitions:

Liability

The state of being responsible for something, especially by law.

Tort

A civil wrong causing harm to someone, for which the injured party can seek legal remedies or damages.

Apparent Authority

A situation where a third party reasonably believes that an agent has the authority to act on behalf of the principal, even if such authority has not been formally granted.

Terminate

To bring an end to something, such as a contract, employment, or operation, either by mutual agreement, fulfillment of terms, or through unilateral action.