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According to the Law of Demand, as the Price of a Good

Question 3

Multiple Choice

According to the law of demand, as the price of a good rises, _____


A) buyers purchase more of the good because they expect prices to be even higher in the future.
B) buyers purchase less of the good because they expect prices to fall in the future.
C) buyers purchase more of the good because they expect the price of a substitute good to rise.
D) buyers purchase less of the good because their real income decreases with an increase in price.
E) buyers purchase more of the good because the higher price reflects an improvement in product quality.

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