explain the difference between these two statements: a rise in price leads to a decrease in quantity demanded
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- Price refers to the cost of a good or service in a market. - Quantity demanded refers to the amount of a good or service that consumers are willing and able to buy at a given price. Show more…
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Which statement best explains the law of demand? The quantity demanded by consumers increases as prices rise, then decreases as prices fall. The quantity demanded by consumers decreases as prices rise, then increases as prices fall. The quantity demanded by producers increases as prices rise, then decreases as prices fall. The quantity demanded by producers decreases as prices rise, then increases as prices fall.
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Suppose that goods A and B are close substitutes. If the price of good A decreases, then we would expect an: a) increase in the demand for A and a decrease in the quantity of B demanded. b )increase in the demand for A and an increase in the quantity of B demanded. c) increase in the demand for good A as well as for good B. d) increase in the quantity of A demanded and a decrease in the demand for B. Why?
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