Which of the Following Is Most Likely to Be an Example

question 93

Multiple Choice

Which of the following is most likely to be an example of the law of demand in action?

• A)A decrease in the price of milk has no effect on the amount of milk consumed.
• B)The amount of candy sold increases while the price of candy remains constant.
• C)An increase in the price of eggs is followed by an increase in the sales of eggs.
• D)An increase in the price of gasoline is followed by a reduction in gasoline sales.

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Definitions:

Returns to Scale

The rate at which production output increases as inputs are increased proportionally, indicating economies, diseconomies, or constant economies of scale.

Labor Hours

The total number of hours worked by all employees for a specific period of time.

Market Costs

Expenses associated with buying, selling, and trading goods or services in a marketplace, including but not limited to production costs, transaction fees, and taxes.

Internet Servers

Machines or computer programs that serve the requests of other programs (clients) within a network, providing essential services such as web hosting, email, and data storage.