14
QuizMultiple Choice

Microeconomics — Test

Question 14 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

Which best explains how the law of demand affects consumers?

Answer
A
It helps consumers tell producers when prices are too high.
B
It helps consumers know when prices are going up.
C
It helps consumers tell producers when to make new goods.
D
It helps consumers know when prices are going down.

Explanation

The law of demand says consumers generally buy less of a good when its price rises and more when its price falls, all else being equal. Their buying choices send a signal to producers: if the price is too high, consumers may purchase less. So the best answer is “It helps consumers tell producers when prices are too high.”

AI-written and checked against the verified answer.

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