If a rise in the price of good X causes the quantity demanded of good X to fall,then
A) the Engel curve for good X is downward sloping.
B) the (ordinary)demand curve for good X is downward sloping.
C) the demand for good X is elastic.
D) good X must be a Giffen good.

Question

Quizplus · Accepted Answer

This is the standard definition of the law of demand, which states that as the price of a good increases, the quantity demanded of that good will decrease. This is reflected in the downward slope of the demand curve for that good. The other choices are not necessarily true based on the information given.

If a Rise in the Price of Good X Causes