Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity demanded rises. This relationship between price and quantity demanded is referred to as
a. equilibrium.
b. the law of demand.
c. the relationship between demand and income.
d. the definition of a normal good.
Question 2
If the stock market continues a steady climb upwards, this ____ consumer confidence and wealth, leading to ____ consumption, and ____ aggregate demand.
a. increases, decreased, increased
b. decreases, decreased, decreased
c. increases, increased, increased
d. increases, increased, decreased
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