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    Question

    The law of demand is based on the assumption that people

    will: 
    A Buy more of a good as their income increases Correct Answer Incorrect Answer
    B Buy more of a good as its price falls Correct Answer Incorrect Answer
    C Spend all of their money on a single good Correct Answer Incorrect Answer
    D Demand more of everything regardless of price Correct Answer Incorrect Answer

    Solution

    The law of demand states that, all else being equal, as the price of a good decreases, the quantity demanded by consumers increases.

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