Author Question: The law of demand states that: a. as the price of a good increases, more units are demanded. b. ... (Read 48 times)

james · **on:** Jun 30, 2018

The law of demand states that:
a. as the price of a good increases, more units are demanded.
b. there is a direct relationship between the price of a good and the quantity of the good produced.
c. there is a negative relationship between the price of a good and the quantity of the good demanded.
d. there is an increase in the need for a good as the price of the good increases.

Question 2

Consumers buy less of a good as its price increases because:
a. production costs have risen.
b. substitute goods are now relatively cheaper.
c. the income of consumers has effectively risen.
d. the higher price will make the good more valuable to each consumer.