Learning Path
Question & Answer
Choose the Best Answer
Supply
Diminishing Returns
Demand
Market Equilibrium
Understanding the Answer
Let's break down why this is correct
The law of demand says that when a price goes up, people buy less of that item. Other options are incorrect because Supply talks about how many sellers want to sell at a price, not how many buyers want to buy; Diminishing returns is about how adding more workers to a plant makes each worker less productive.
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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