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The main determinant of the behavior of people in which the law of demand applies is the ______________ of the commodity being demanded. A. real income B. nominal income C. price D. all of the above

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter6: Consumer Choices

Section: Chapter Questions

Problem 17P: If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded...

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Question

The main determinant of the behavior of people in which the law of demand applies is the ______________ of the commodity being demanded.

A. real income

B. nominal income

C. price

D. all of the above

Definition Definition Economic principle that states that as the price of a good or service increases, the quantity demanded by consumers decreases, while a decrease in price leads to an increase in quantity demanded, assuming all other factors affecting the demand remaining constant.

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