1. What role does the law of demand play in economic analysis?
2. If the price of jeans rises and the quantity sold goes up, does the demand curve slope upward? Why or why not?
3. If the prices of most goods are rising by an average of 15 percent per year, but the price of gasoline rises just 10 percent per year, what is happening to the real, or relative, price of gasoline? How do you expect consumers will react?