The Law of Demand Is Based on the Observation That

question 433

Multiple Choice

The law of demand is based on the observation that

• A)people buy less of a product when the product becomes less fashionable.
• B)people buy more of a product when the price falls.
• C)people are indifferent to price changes.
• D)stores go out of business if they lower prices.

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Definitions:

Wilhelm Wundt

Wilhelm Wundt is known as the father of experimental psychology, establishing the first psychological laboratory in Leipzig, Germany, in 1879.

Scientific Psychology

The science-based practice of understanding mental functions, behaviors, and processes through empirical research and experimentation.

Laboratory

A controlled setting where scientists and researchers conduct experiments, tests, and research to gather data, test hypotheses, and develop new products or knowledge.

Cognitive Abilities

Sources of individual differences in performance on cognitive tasks, including factors such as intelligence, memory capacities, attentional focus, knowledge base, strategies, and processing speed.