Asked by Shalini Ballur on Jul 28, 2024
Verified
The explanation for the law of demand begins with:
A) a small number of wants satisfied by scarce resources.
B) finite wants satisfied by infinite resources.
C) unlimited wants confronting scarce resources.
D) unlimited wants matching up with unlimited resources.
E) prices acting as signals to existing and potential suppliers.
Law of Demand
Economic principle stating that, ceteris paribus, as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa.
Scarce Resources
Essential inputs that are available in limited quantities for the production of goods and services, leading to the problem of allocation.
Unlimited Wants
The economic concept that human desires and needs are endless and vary in nature, leading to constant demand for goods and services.
- Become familiar with the core concept of the law of demand and its impact on the connection between price and quantity demanded.
Verified Answer
ZK
Zybrea KnightAug 02, 2024
Final Answer :
C
Explanation :
The law of demand states that as the price of a good or service increases, the quantity demanded of that good or service will decrease, ceteris paribus. This is because individuals face unlimited wants, but these wants confront scarce resources. As the price of a good or service increases, individuals will demand less of it because they must make tradeoffs with other scarce resources in order to purchase it.
Learning Objectives
- Become familiar with the core concept of the law of demand and its impact on the connection between price and quantity demanded.