Practice Quiz

Praxis II Citizenship

Category - Economics

Start a Study Session Sign up for Question of the Day
The law of demand states:
  1. As the price for a product or service goes up, demand goes up.
  2. As the availability of a product or service increases, demand decreases.
  3. As the price for a product or service goes up, demand goes down.
  4. As the availability of a product or service increases, demand increases.
Explanation
Answer: C - The law of demand states that as the price for a product or service increases, the demand for that product or service decreases. The cheaper a product is, the more it will sell. For example, Joe’s Pizza Palace may only sell 10 pizzas a night if each pizza costs $30. But, if Joe lowers the price of each pizza to $15 (with all other qualities remaining equal), he will likely sell more than 10 pizzas because they are more affordable and appeal to a broader range of customers.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz