Demand and Law of Demand

According to the Law of Demand, when the price of a good increases, the quantity demanded will:

• A. Increase

• B. Stay the same

• C. Decrease

• D. Double

The Law of Demand shows a relationship between:

• A. Price and cost

• B. Price and demand

• C. Supply and demand

• D. Demand and income

What shape does the demand curve typically have?

• A. Upward sloping

• B. Downward sloping

• C. Vertical line

• D. Horizontal line

A consumer must have both willingness and __________ to create demand.

An increase in income generally leads to an __________ in demand for inferior goods.