Which of the Following Statements About Demand Is True

question 140

Multiple Choice

Which of the following statements about demand is true?

• A)Since most college students want a Mercedes sports coupe, their demand for it is high.
• B)If price increases, the demand curve shifts to the right.
• C)The demand curve for bacon will not shift when the price of bacon changes.
• D)If a supply curve shifts, thereby changing the price, the demand curve will shift as well.
• E)If a demand curve shifts, the supply curve will shift as well, whether or not the price changes.

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Definitions:

Utility Function

A mathematical representation of how a set of goods or outcomes provides satisfaction or utility to an individual.

Reservation Price

The maximum or minimum price a buyer is willing to pay or a seller is willing to accept for a good or service.

BMWs

A brand of luxury vehicles produced by the German company Bayerische Motoren Werke AG, known for high-quality, performance-oriented cars and motorcycles.

BMWs

A brand of luxury vehicles produced by the German company Bayerische Motoren Werke AG, known for high performance and quality.