Txst econ 2314 exam 2 - Study guides, Class notes & Summaries

Law of Demand correct answers Holding everything else constant, when the price of a product falls, the quantity demanded of the product will increase, and when the price of a product rises, the quantity demanded of the product will decrease. The Law of demand tells us the ________ but not the ______ correct answers Direction, size How do you quantify the price sensitivity? correct answers Percentage change in price If a small percentage increase in price is associated with a large pe...