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.

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Definitions:

Global Market Share

The percentage of an industry's sales or revenues generated by a company, determined on a global scale.

Automotive Company

A business entity involved in the design, development, manufacturing, marketing, and selling of motor vehicles.

Personalized Charismatic

A charismatic leader who exercises few restraints on the use of power in order to best serve the leader’s own interests.

Telecom Company

A company that provides telecommunications services such as phone, internet, and cable television to customers.