Which of the Following Most Correctly States the Law of Demand

question 237

Multiple Choice

Which of the following most correctly states the law of demand?

• A) As the price falls all other things unchanged, demand will go up.
• B) As the price goes up, all other things unchanged, demand will go down.
• C) As the price falls, all other things unchanged, the quantity demanded will go down.
• D) As the price falls, all other things unchanged, the quantity demanded will increase.

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Definitions:

Pollution

The introduction of contaminants into the natural environment that cause adverse changes and harm to the ecosystem.

Market Failure

A situation where the allocation of goods and services is not efficient, often leading to a net social welfare loss.

Business Sector

A segment of the economy that represents the activities of businesses, corporations, and private enterprises that provide goods and services to consumers.

Deng Xiaoping

A Chinese communist leader who initiated significant economic reforms in China from the late 1970s, leading to its market economy transformation.