18 min read
This study guide covers supply and demand, focusing on the supply and demand model. Key concepts include markets, demand and supply curves, elasticity, market equilibrium and disequilibrium, government intervention, and international trade. It also covers calculating various elasticities (price, income, cross-price) and analyzing the effects of price controls, taxes, tariffs, and quotas.
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Question 1 of 27
What happens to the quantity demanded of a good when its price decreases, according to the law of demand? 📉
It increases
It decreases
It remains the same
It fluctuates randomly