Which of the Following Best Represents the Law of Demand

question 371

Multiple Choice

Which of the following best represents the law of demand?

• A) As the price of a good decreases, the quantity demanded of that good decreases.
• B) As the price of a good decreases, the quantity demanded of that good increases.
• C) As the demand for a good increases, the price of that good increases.
• D) As the price of a good decreases, the demand curve for that good shifts to the right.

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Definitions:

Deindividuation

Deindividuation is a psychological state occurring in group settings that leads to a reduction in self-awareness and an increase in impulsivity and deviation from typical behavior, often resulting in actions not typically exhibited alone.

Self-discrepancy Theory

Higgins’s theory about the consequences of making actual – ideal and actual – ‘ought’ self-comparisons that reveal self-discrepancies.

Festinger

Leon Festinger was a psychologist known for the theory of cognitive dissonance, which describes the discomfort felt when holding conflicting thoughts or beliefs.

Self-regulation

The process by which individuals control their own thoughts, emotions, and behaviors to pursue long-term goals.