The Law of Demand Is Illustrated When

question 212

Multiple Choice

The law of demand is illustrated when:

• A) an increase in tuition encourages more students to enroll in college because the quality of education has risen.
• B) an increase in the purchases of personal computers results from lower prices.
• C) higher oil prices cause oil companies to drill for new sources of oil.
• D) higher fees for the use of public golf courses force golfers to purchase fewer golf balls.

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Definitions:

Price of Coffee

The amount of money required to purchase a specific quantity of coffee.

Budget Line

Represents the combination of goods a consumer can purchase with a specific budget at given prices.

Slope

The rate at which a line inclines or declines, showing the relationship between the change in the vertical axis to the horizontal axis.

Budget Line

A graphical representation of all possible combinations of two goods that an individual can purchase given their income and the prices of the goods.