Question 10
MediumOriginal questionRead the two statements and choose the correct option.
I. The law of demand holds only when other things such as income and tastes stay the same.
II. The law of demand describes how quantity demanded changes with income.
Show the answer and explanation
CorrectNot quiteAnswer A
Correct answer: A
Explanation
I is true: 'other things being equal' is part of the law.
II is false: the law relates quantity to the good's own price, not to income.
- Concept
- Ceteris paribus in the law of demand
- Typical timeTypical
- 70 s
- Your timeYours
- —
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Ten questions from Demand & Its Determinants, at your own pace.