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WAEC Economics 2007 Question 11

Question 11

Theory of Demand

The lower the price of a commodity, the greater the quantity demanded. This is based on the assumption that consumers'

  1. A.income is diminished
  2. B.income remains the same
  3. C.utility is diminished
  4. D.population is high.
Show the answer and explanation

Answer: B (income remains the same)

Explanation

The law of demand holds other things equal, including the consumers' income.