Economists refer to the relationship that a higher price leads to a lower quantity demanded as the _____________.

Question

BlackTom AI · Accepted Answer

The question asks about economists’ term for the relationship in which higher price leads to lower quantity demanded.
Option 1: 'income gap' — This term relates to disparities in income distribution, not to how price affects quantity demanded. It does not capture the price-quantity relationship described here.
Option 2: 'market equilibrium' — Market equilibrium describes a state where quantity supplied equals quantity demanded, not the directional relationship between price and quantity demanded itself. It’s a broader concept of balance, not specifically the law governing price and quantity demanded.
Option 3: 'law of demand' — This is the standard principle stating that, all else equal, as price rises, consumers buy less, leading to a lower quantity demanded. It directly matches the described relationship and is the established term economists use.
Option 4: 'price model' — A price model could refer to a mathematical or theoretical framework for price determination, but it’s not the conventional label for the inverse price-quantity relationship described in the question.
In summary, among the options, the term that correctly names the inverse relationship between price and quantity demanded is the law of demand, which captures the intuitive and empirical pattern that higher prices typically reduce the quantity consumers are willing to purchase.

ECON&202 33295 Chapter 3 Quiz

Economists refer to the relationship that a higher price leads to a lower quantity demanded as the _____________.

View Explanation

Log in for full answers

Similar Questions

Assuming all other factors remain the same, in a demand curve for most items, raising the price of a purchase typically results in _______.

18. The law of the demand states that there is a _______________ between the price and the quantity of the demand

Which is of the following statements is correct?

When quantity demanded decreases in response to a change in price:

经济学家将价格升高导致需求量降低的关系称为 _____________。

需求的性质表明，随着商品价格的上涨：

需求曲线向下倾斜再次说明了随着 _ 上升，_____ 下降的模式。

The nature of demand indicates that as the price of a good increases:

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler

ECON&202 33295 Chapter 3 Quiz

Economists refer to the relationship that a higher price leads to a lower quantity demanded as the _____________.

View Explanation

Log in for full answers

Similar Questions

Assuming all other factors remain the same, in a demand curve for most items, raising the price of a purchase typically results in _______.

18. The law of the demand states that there is a _______________ between the price and the quantity of the demand

Which is of the following statements is correct?

When quantity demanded decreases in response to a change in price:

经济学家将价格升高导致需求量降低的关系称为 _____________。

需求的性质表明，随着商品价格的上涨：

需求曲线向下倾斜再次说明了随着 _____________ 上升，_________________ 下降的模式。

The nature of demand indicates that as the price of a good increases:

More Practical Tools for Students Powered by AI Study Helper

Making Your Study Simpler

需求曲线向下倾斜再次说明了随着 _ 上升，_____ 下降的模式。