The quantity demanded fall because the price increased. Here the goods follow the Law of Demand.
According to the Law of Demand, whenever there is an increase in price of a commodity then the demand for that commodity decreases. This is also true vice-versa. The price and demand for the commodity shares an inverse relation.
There are many things which determine a demand like income of a consumer, preferences to buy a product and making a decision to buy a substitute for a product.
The questions regarding the supply of a product matching its demand in the market and setting the market prices are all answered by the law of demand and supply.
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Answer:
Predictive validity.
Explanation:
A Predictive validity test is the test that is taken to predict the future performance of the applicant based on the scores in the test. The test is useful in predicting the future, as suggested by the name.
The tests that are taken before allowing a person in any organisation are often predictive. A pre-employment test is such example.
<u>In the given case, the entrance exams are also an example of predictive validity. It is because based on the scores scored by a student will help the university authorities about the performance of the student</u>.
So, the correct answer is predictive validity.
