Learning Path
Question & Answer
Choose the Best Answer
Demand increases
Demand decreases
Demand remains unchanged
Demand fluctuates unpredictably
Understanding the Answer
Let's break down why this is correct
When people have less money, they look for cheaper options. Other options are incorrect because Some think less money means buying less overall; The idea that income has no effect on demand is wrong.
Key Concepts
Demand and Supply Basics
medium level question
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Deep Dive: Demand and Supply Basics
Master the fundamentals
Definition
Demand and supply basics cover the fundamental concepts related to the quantities of a product that consumers are willing and able to purchase (demand) and the quantities that suppliers are willing to offer (supply) at different price levels. The law of demand and supply explains the inverse relationship between price and quantity demanded or supplied, leading to the formation of demand and supply curves.
Topic Definition
Demand and supply basics cover the fundamental concepts related to the quantities of a product that consumers are willing and able to purchase (demand) and the quantities that suppliers are willing to offer (supply) at different price levels. The law of demand and supply explains the inverse relationship between price and quantity demanded or supplied, leading to the formation of demand and supply curves.
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