Author Question: John believes that when the price of a good increases people will purchase more of the good. This ... (Read 264 times)

BRWH · **on:** Jun 29, 2018

John believes that when the price of a good increases people will purchase more of the good. This statement is

A) consistent with the law of demand.
B) inconsistent with the law of demand.
C) referring to money prices.
D) consistent with the law of supply.

Question 2

In a market system, how are the price signals established?

A) Consumer advocacy groups establish fair prices for items, and most firms follow these pricing guidelines because they don't want to anger their consumers.
B) Industry associations establish an acceptable price range for each commodity sold within the industry, and member firms are obligated to abide by association guidelines.
C) The forces underlying supply and demand interact to determine a market clearing price.
D) Federal legislation establishes maximum prices for most goods, and state governments regulate the prices of any remaining items.