Question

8a)Which of the following is true of a demand curve?

It is the equivalent of the production possibilities curve.

It has a positive slope.

It reflects the inverse relationship between price and quantity demanded.

It reflects the direct relationship of price and quantity demanded.

b)If, during economic prosperity, the demand for Good A decreases and the demand for Good B increases, then which of the following is true?

Good B are substitutes. Good A and Good B are substitutes.

Good A is a normal good, and Good B is an inferior good.Good .

Good A and Good B are complements.

Good A is an inferior good, and Good B is a normal good.

c)If, during economic prosperity, the demand for Good A decreases and the demand for Good B increases, then which of the following is true?

Good A is a normal good, and Good B is an Good A is a normal good, and Good B is an inferior good..

Good A and Good B are complements.

Good A is an inferior good, and Good B is a normal good. Good A is an inferior good, and Good B is a normal good. Good A is an inferior good, and Good B is a normal good.

Good A and Good B are substitutes.

d)

The law of demand cannot be described by which of the following?

A graphic representation

Production

Words

A demand schedule

Answer 1

Q8
Answer
a)
option 3
   It reflects the inverse relationship between price and quantity demanded
Law of demand says the the increase in price decreases quantity demanded and vice verse

it means the relationship between quantity demanded and the price is inversely or negatively related.

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b)
Option 4
Good A is an inferior good, and Good B is a normal good
During economic prosperity, consumer income increases. the increase in income demand for good A decreases means the good is inferior good and demand for good B increases means the good is normal good
inferior good is a good for which demand decreases as income increases
A normal good is a good for which demand increases as income increases.

c) (it is same as B)
option 3
Good A is an inferior good, and Good B is a normal good
During economic prosperity, consumer income increases. the increase in income demand for good A decreases means the good is inferior good and demand for good B increases means the good is normal good
inferior good is a good for which demand decreases as income increases
normal good is a good for which demand increases as income increases.

d)
option 2
Production
Production can not describe demand law.
The demand law in words is, the increase in price decreases quantity demanded and vice verse, while other things are constant.
By graph, a graph where the price on the vertical axis and quantity on the horizontal axis, the demand curve is downward sloping and has a negative slope

by schedule, where quantity demanded is shown at each price level in the table, the is from zero to increasing and quantity demanded is from highest possible demanded quantity to decrease.