Free Practice Question
CR · Critical Reasoning
655-705
Complete the Passage
The law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will consume that good. In other words, the higher the price, the lower the quantity demanded. This principle is illustrated when _____________
Answer Choices
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Company A has a monopoly over the widget market so an increase in widget prices has little effect on the quantity demanded
B
a manufacturer of luxury cars noticed that its customer base is relatively unresponsive to changes in price
C
a city experiences an increase in both gasoline prices and the number of people taking public transportation
D
an increase in the number of computer retailers led to a decrease in the average price of computers
E
a reduction in the price of oranges from $2 per pound to $1 per pound results in 75 pounds of oranges being sold as opposed to 50 pounds
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NehalFeb 18, 2025
can you explain more?
Details
Difficulty
655-705
Type
CR