"Other Things Equal, When the Price of a Good Rises

question 130

Multiple Choice

"Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises." This relationship between price and quantity demanded is referred to as

• A) equilibrium.
• B) the law of demand.
• C) the relationship between supply and demand.
• D) the definition of an inferior good.

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Definitions:

Course of Dealing

The conduct between parties in previous transactions that establishes a common basis for their understanding.

Conforming Goods

Products or materials that meet the specifications and standards outlined in a contract or agreement between buyer and seller.

Course of Performance

A term referring to the conduct between parties that is used to interpret their agreement within their ongoing business relationship.

Usage of Trade

Established practices or methods of dealing regularly observed in a particular industry or trade.