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The Law of Demand States That, Ceteris Paribus, an Increase

Question 25

Multiple Choice

The law of demand states that, ceteris paribus, an increase in:


A) the price of a good causes its quantity demanded to increase.
B) the price of a good causes its quantity demanded to decrease.
C) the quantity demanded of a good causes its price to increase.
D) the quantity demanded of a good causes its price to decrease.
E) the quantity demanded of a good causes its supply to decrease.

Correct Answer:

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