"As the price of apples goes up,the demand for apples goes down." The author of this statement
A) implies that price and demand are unrelated.
B) uses the word "demand" when he should use the word "supply."
C) uses the word "demand" when he should use the words "quantity demanded."
D) implies that demand and price have a direct relationship.

Question

Quizplus · Accepted Answer

The statement correctly uses "demand" to describe the overall desire for apples, but the specific relationship described (price up, demand down) actually refers to "quantity demanded," which decreases as the price increases, according to the law of demand. This is a distinction in economics where "demand" refers to the desire for a product and the ability to purchase it at various prices, while "quantity demanded" refers to the amount of a product consumers are willing and able to buy at a specific price.

"As the Price of Apples Goes Up,the Demand for Apples