Law of Demand Quick Check
Which of the following is not a determinant of demand?
cost of production
As the price of a good increases, all else being equal, consumers will likely purchase _____.
less of the good because substitutes have become relatively less expensive
Teenagers frequently purchase similar shoes from one of two major competing shoe manufacturers. If the price of one manufacturer's shoes increases dramatically, teenagers are likely to purchase _____.
more shoes from the competing manufacturer at any given price, as the two brands are substitutes
The law of demand states that as the price of a particular good or service increases, _____.
quantity demanded decreases
Sunscreen and beach towels are complementary goods. If the price of sunscreen increases, ceteris paribus, _____.
the quantity demanded of beach towels will decrease for every possible price
