The Law of Demand – Flashcards
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The area in which the law of demand best applies is
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microeconomics
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The graph shows a demand curve.
What change does the graph show?
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an increase in demand as prices decrease
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Consumer demand is defined as
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how much of something people want.
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Which best describes a reason that consumer demand can change?
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loss of income
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A demand curve shows how changes in
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quantity affects price
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The measure of how demand changes after price adjustments is called
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elastic demand.
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According to the law of demand, as prices decrease, demand
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increases
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The law of demand applies most directly to which group?
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buyers
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Which does the law of demand do? Check all that apply.
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allows producers to respond to consumers
allows consumers to influence prices
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Which best explains how the law of demand affects consumers?
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It helps consumers tell producers when prices are too high.
