Answered: The law of demand states that, ceteris…

The law of demand states that, ceteris paribus, there is an inverse relationship between the price of a good and the quantity demanded of the good. A.True B.False

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The law of demand states that, ceteris paribus, there is an inverse relationship between the price of a good and the quantity demanded of the good.

A.True

B.False

Definition Definition Economic principle that states that as the price of a good or service increases, the quantity demanded by consumers decreases, while a decrease in price leads to an increase in quantity demanded, assuming all other factors affecting the demand remaining constant.

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