Author Question: The law of demand says that as the price of a good rises, a. buyers recognize that price may be ... (Read 74 times)

Garrulous · **on:** Jul 1, 2018

The law of demand says that as the price of a good rises,
a. buyers recognize that price may be even higher in the future, and so they buy now
b. buyers purchase less in hopes that the price will fall in the future
c. buyers purchase less, in part because their real income has fallen
d. buyers purchase more, in part because the price of a substitute has risen
e. buyers purchase more, in part because it has higher status at a higher price

Question 2

The law of demand assumes that as the price of a good increases,
a. people recognize that its price may be even higher in the future, so they buy now rather than later
b. consumers tend to shift their purchases to relatively cheaper substitutes
c. people will buy less of it in the hope that the good will be cheaper in the future
d. the consumer's money income increases, and he or she is less able to buy all goods, including the good whose price has increased
e. the consumer's money income decreases, and if the product is a normal good, more will be purchased