When the Term "Price" Is Used in the Law of Demand

question 225

Multiple Choice

When the term "price" is used in the law of demand, price refers to

• A) the dollar price of the good.
• B) the price of the good relative to the price of another good.
• C) the absolute price of the good.
• D) the nominal price of the good relative to its nominal price in the previous year.

---

Definitions:

Direction

In statistics, it refers to the tendency of a set of data points or a relationship between variables (e.g., positive or negative correlation).

Correlation Coefficient

A statistical measure that calculates the strength of the relationship between two variables.

Independent Variable

A variable in scientific research that is manipulated or changed to observe its effect on a dependent variable.

Continuous

Refers to data or a variable that can take on any value within a given range, not restricted to discrete values.