Ask Question
BusinessBusiness
23 May, 03:44

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 Question 1options: 1) equilibrium. 2) the law of demand. 3) the relationship between supply and demand. 4) the definition of an inferior good.

+3
Answers (1)
  1. 23 May, 04:05
    0
    Answer: The law of demand

    Explanation: The law of demand states that everything else being equal, the demand and price of a commodity will reflect a negative relationship.

    This negative relationship occurs due to the income effect. As per the income effect when the price of a commodity rises, many of its existing customers stops consuming it as the price of the commodity exceeds their purchasing power.

    Hence, from the above we can conclude that the right option is B.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Other things equal, when the price of a good rises, the quantity demanded of the good falls, and when the price falls, the quantity ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Why do we study opportunity cost
Answers (1)
Which system allows critical business decisions to be made in a timely manner?
Answers (1)
When a competitive firm finds that the market price is below its minimum average variable cost level, it will sell: (A) The output where average total costs equal price (B) Nothing a all, he firm shuts down (C) The output level where marginal
Answers (1)
Taylor wants to create a budget to track her expenses and identify ways she can reduce spending. What tools could she use (choose all that apply) ? a) Quicken b) bill pay c) spreadsheets d) Mint e) BudgetTracker
Answers (1)
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 20,000 shares authorized, 9,000 shares issued, and 8,000 shares of common stock outstanding. The journal entry to record the dividend payment is:
Answers (1)
New Questions in Business
The arnold fertilizer company's stock is selling for $55 in the market and its earnings per share is $5. the company is projected to grow at a rate of 22% over the next year. what is this company's price/earnings to growth (peg ratio?
Answers (1)
Strong company applies overhead based on machine hours. at the beginning of 20x1, the company estimated that manufacturing overhead would be $500,000, and machine hours would total 20,000.
Answers (1)
The last 50 years of declining productivity of the commercial fish populations off the northeast coast of north america reveal the impact of
Answers (1)
Which of these is NOT one of the items that can provide useful assistance to a project team to define the activities of a project? a. the major milestones from the Project Charter b. schedules from similar, previous projects c. issue logs d.
Answers (1)
The purpose of the post-closing trial balance is to Group of answer choices prove the equality of the temporary account balances that are carried forward into the next accounting period.
Answers (1)
Home » Business » 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.
Sign Up Forgot Password?