Which factor is held constant in defining the Law of Demand

Which factor is held constant in defining the Law of Demand?

Technology

Number of firms

Price of related goods

Price of inputs

2 points   

QUESTION 2

When the price of X increases, quantity of Y sold goes up. X and Y are

Complementary goods

Substitute goods

Independent goods

None of the above

2 points   

QUESTION 3

Demand price is

Minimum price that a seller is willing to accept

Maximum price that a seller charges

Equilibrium price that a buyer and a seller decides in the market

Highest price a buyer is willing to pay

2 points   

QUESTION 4

One of the factors that may lead to a change in demand is

Income of the consumers

Number of sellers

Price of the product

Price of resources required to produce the good

2 points   

QUESTION 5

A statement like \"In a country like the United States, every individual should have access to healthcare\" is a

Positive statement

Political statement

Normative statement

Liberal statement

2 points   

QUESTION 6

Excess demand is a result of

High consumer demand

High popularity of a product

Price set higher than equilibrium price

Price set lower than equilibrium price

2 points   

QUESTION 7

Excess supply is a result of

Price set higher than equilibrium price

Price set lower than equilibrium price

Failure of producers to estimate market supply

Failure of consumers to estimate market equilibrium

	1.	Technology
	2.	Number of firms
	3.	Price of related goods
	4.	Price of inputs

Solution

Question 1

Price of related goods is held constant in defining the Law of Demand. The option 3 is the right answer.

Question 2

When the price of X increases, quantity of Y sold goes up. X and Y are Substitute goods. The option 2 is the right answer.

Question 3

Demand price is Highest price a buyer is willing to pay. {Option 4}

Question 4

One of the factors that may lead to a change in demand is the price of product. {Option 3}

Question 5

A statement like \"In a country like the United States, every individual should have access to healthcare\" is a Normative statement. [Option 3 ]

Explanation:- Normative statement describes \'What ought to be\'. Its objective is to determine the norms or aims. These statements pronounce value judgements.

Question 6

Excess demand is a result of price set Higher than equilibrium price. [Option 3]

Question 7

Excess supply is a result of price set Lower than equilibrium price. [Option 2]