What is the law of demand and how do we illustrate it? What ...

[oliviahorn72]

What is the law of demand and how do we illustrate it?
 
  What will be an ideal response?

Question 2

Which of the following is a reason why we should consider the federal national debt a problem?
 
  A) If the debt was incurred to finance research and development, crowding out will occur.
  B) If the debt drives up interest rates, crowding out will occur.
  C) The federal government is in danger of defaulting on its debt.
  D) If the debt was incurred to finance improvements in infrastructure, crowding out will occur.

[jsm54321]

Answer to Question 1

The law of demand states: Other things remaining the same, the higher the price of a good, the smaller is the quantity demanded; and the lower the price of a good, the greater is the quantity demanded. The law of demand is illustrated by a downward-sloping demand curve drawn with the quantity demanded on the horizontal axis and the price on the vertical axis. The slope is negative to show that the higher the price of a good, the smaller is the quantity demanded and the lower the price of a good, the greater is the quantity demanded.

Answer to Question 2

B

[oliviahorn72]

YES! Correct, THANKS for helping me on my review

[cpetit11]

Thanks for the timely response, appreciate it