Download a. A. there is a

Name_______________________________________________Date______________Period________
1. The law of demand state:
a. A. there is a positive relationship between price and quantity demanded
b. The graph of a demand curve is upward sloping line
c. People usually buy less goods and services when their price rises
d. People’s behavior in the marketplace is unpredictable
2. When the price of an item changes, people will usually:
a. Look at how the price change influences the relative value of their alternatives
b. Disregard a small change in price
c. Assume the item is on sale and buy more
d. None of the above
3. Which of the following will usually not cause people to demand more a good or services?
a. Expectations
b. Number of buyers
c. Price
d. Higher income
4. Develop an economic rationale for the advertising marketing function. Include a graph as part of
your answer.