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.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
ChapterP2: Microeconomics Fundamentals
Section: Chapter Questions
Problem 12KC
Question
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.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Micro Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613064/9781337613064_smallCoverImage.gif)
![Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613040/9781337613040_smallCoverImage.gif)
![Exploring Economics](https://www.bartleby.com/isbn_cover_images/9781544336329/9781544336329_smallCoverImage.jpg)
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
![Micro Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613064/9781337613064_smallCoverImage.gif)
![Economics For Today](https://www.bartleby.com/isbn_cover_images/9781337613040/9781337613040_smallCoverImage.gif)
![Exploring Economics](https://www.bartleby.com/isbn_cover_images/9781544336329/9781544336329_smallCoverImage.jpg)
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
![Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781337617383/9781337617383_smallCoverImage.gif)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
![Microeconomics](https://www.bartleby.com/isbn_cover_images/9781337617406/9781337617406_smallCoverImage.gif)