Which of the Following Is a Fair Definition of Price

question 149

Multiple Choice

Which of the following is a fair definition of price?

• A)In purely economic terms,price is the monetary value of a good or service.
• B)Price is a measure of what a customer is required to give up to obtain a good or service.
• C)None of the above
• D)Both A and B

---

Definitions:

Law of Demand

A fundamental principle in economics that describes the inverse relationship between the price of a good or service and the quantity demanded by consumers, holding other factors constant.

Quantity Demanded

The aggregate quantity of a product or service buyers are prepared to buy at a certain price point, within a specific timeframe.

Demand

The desire to purchase goods and services backed by the ability and willingness to pay, at a given price level within a specific time period.

Quantity Demanded

refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price level in a given period.