The law of demand states that a

Economics Dec 08, 2020

The law of demand states that

a. with an increase in the price, the quantity demanded increases.

b. with an increase in the price, the quantity demanded decreases.

c. with an increase in price, demand falls.

d. with an increase in price, demand rises.

Expert Solution

The correct option is b. with an increase in the price, the quantity demanded decreases.

In the concept of demand, the quantity demanded and price always has an inverse relationship since it influences the behavior of consumers with regards to spending disposable income for goods and/or services.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote