Question : Demand contraction occurs when:

Option 1: Price falls but demand remains stable

Option 2: Price rises and demand also rises
 

Option 3: Price remains stable and demand falls

Option 4:  Price rises and demand falls

Question : Demand contraction occurs when:

Option 1: Price falls but demand remains stable

Option 2: Price rises and demand falls
 

Option 3: Price remains stable and demand falls

Option 4: Price rises and demand also rises

Question : The law of demand states that when _____.

Option 1: income and price rise demand rises

Option 2: income rises demand rises

Option 3: price rises demand rises

Option 4: price falls demand rises

Question : For an inferior good , demand falls when 

Option 1: Price rises .

Option 2: Income rises.

Option 3: Price fall.

Option 4: Income fall.

Question : If a consumer's demand for a good moves in the same direction as the consumer's income, the consumer's demand for that good must be inversely related to the price of the good, which is called _____.

Option 1: law of demand

Option 2: law of supply

Option 3: law of substitute

Option 4: law of optimal choice