Question

Select True or False.

According to the law of demand, as prices rise, so will demand.

Goods in joint supply are produced from the same resources.

Conspicuous consumption involves only purchasing what is necessary.

Change in quantity demanded is based solely on changes in price.

According to the law of supply, as prices decrease, the quantity of a product decreases.

According to the law of supply, as prices rise, so will supply.

Answer 1

1. **False** - According to the law of demand, as prices rise, demand typically decreases, not increases.

2. **True** - Goods in joint supply are produced from the same resources, meaning that producing one good can result in the production of another good.

3. **False** - Conspicuous consumption involves purchasing goods not just for necessity, but also for the sake of displaying wealth or status.

4. **True** - Change in quantity demanded is based solely on changes in price, as reflected by movements along the demand curve.

5. **True** - According to the law of supply, as prices decrease, the quantity of a product supplied typically decreases.

6. **True** - According to the law of supply, as prices rise, so will supply, leading to an increase in the quantity supplied.