--%>

Illustrate a fundamental characteristic of demand behavior

Illustrate a fundamental characteristic of demand behavior?

E

Expert

Verified

1. Other things being equal, as price increases, the corresponding quantity demanded falls.

2. Restated, there is an inverse relationship between price and quantity demanded.

3. Note the “other things being constant” assumption refers to prices of related goods, consumer income, tastes and other things besides the price of the product being discussed.

   Related Questions in Business Economics

  • Q : Illustrate the supply curve and also

    Illustrate the supply curve and also determinants of supply?

  • Q : The supply curve when each of these

    What happens to the supply curve when each of these determinants changes?

  • Q : Explain about the arbitrage except

    Not like speculation, there arbitrage is: (w) an activity which is generally more lucrative when conditions are favorable. (x) a profitable and relatively riskless activity. (y) the process of representing a domestic company within fo

  • Q : Why businesses are not really free to

    Why businesses are not really “free” to produce what they wish?

  • Q : Best illustration of a perfectly

    Which of the given is the best illustration of a perfectly competitive industry: w) wheat production. x) steel production. y) electricity production. z) airplane production. Hey friends please give your opinion for

  • Q : Comparative advantage in production I

    I have a problem in economics on Comparative advantage in production. Please help me in the following question. The oranges are grown in Florida and potatoes are grown in Maine mainly since: (i) orange-grower’s in Maine have not lobbied effectiv

  • Q : Competitive market economy will make

    Briefly explain how the competitive market economy will make the needed adjustments to reestablish an efficient allocation of society’s scarce resources?

  • Q : Elucidate reallocation of Government

    Elucidate reallocation of Government resources?

  • Q : Specialization in division of labor I

    I have a problem in economics on Specialization in division of labor. Please help me in the following question. Jennifer writing computer code whereas Melissa handles the business features of Econo-Software would be an illustration of specialization i

  • Q : Factor Price Equalization theorem

    Please answer each of the exercises below. While you may work together on the homework, you must turn in your own work (in your own words). Homework must be handed in at the beginning of class on the due date unless other arrangements have been made. No late homework will be accepted. Homework wi