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

Question

BlackTom AI · Accepted Answer

Consider what the concept of demand implies about how quantity demanded responds to price changes.
Option 1: 'suppliers wish to sell less of it.' This reflects a supply-side idea, not demand. The statement misattributes the effect of price on sellers, whereas the question is about how demand reacts to price, not supply.
Option 2: 'more of it is produced.' Increased price can incentivize higher production through the supply side, but the question is about the nature of demand. Production decisions relate to supply, risk of shifting attention to an effect that depends on costs and producers’ behavior rather than consumers’ demand.
Option 3: 'more of it is desired.' This would suggest that higher prices elicit greater quantity demanded, which contradicts the law of demand. Generally, when price rises, consumers purchase less, not more, unless unusual circumstances (like Giffen or Veblen effects) apply, which are not indicated here.
Option 4: 'buyers desire to purchase less of it.' This aligns with the fundamental law of demand: holding other factors constant, as price increases, quantity demanded falls because consumers substitute toward cheaper goods or forgo the purchase altogether. This correctly captures the nature of demand responding negatively to price changes.

ECON&202 33295 Chapter 3 Quiz

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

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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。

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

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ECON&202 33295 Chapter 3 Quiz

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

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。

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

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。