Which of the following statements about the law of demand is correct?Select one:a. According to the substitution effect, persons will buy more of good X when the price of good X increases, as this affects the price of X relative to the prices of other goods. b. As a result of the income effect, persons will buy less of good Y when the price of good Y increases, because the increase in the price of Y decreases the real value of their income. c. According to the law of demand, wants and needs are determined by the price of goods. d. When the price of good Z increases, an upward movement along the demand curve for good Z will take place, and the quantity demanded of good Z will increase due to the higher price.

Which of the following statements about the law of demand is correct?Select one:a. According to the substitution effect, persons will buy more of good X when the price of good X increases, as this affects the price of X relative to the prices of other goods. b. As a result of the income effect, persons will buy less of good Y when the price of good Y increases, because the increase in the price of Y decreases the real value of their income. c. According to the law of demand, wants and needs are determined by the price of goods. d. When the price of good Z increases, an upward movement along the demand curve for good Z will take place, and the quantity demanded of good Z will increase due to the higher price.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter4: Prices: Free, Controlled, And Relative

Section: Chapter Questions

Problem 11QP

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