UNIT 01 / BASIC ECONOMIC CONCEPTS

Demand1.4 test

100 questions with explanations after each answer.

Practice mode

QUESTION 01 / 100Easy

The law of demand states that, all else equal, there is a(n) ___ relationship between the price of a good and the quantity demanded.

Select one answerAProportional — a 10% rise in price always causes a 10% rise in quantity demandedBInverse — as price rises, quantity demanded fallsCNeutral — price and quantity demanded do not affect each otherDDirect — as price rises, quantity demanded risesEPositive — as price rises, quantity demanded rises

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1 of 100

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Question 1