Sia
Question
Macroeconomics
Posted 10 months ago
Which of the following best describes the law of demand?
Choose 1 answer:
(A) People demand the same amount of a good no matter its price.
(B) When price decreases, the quantity demanded increases.
(c) Demand decreases for a normal good when incomes increase.
(D) Sellers set the price that demanders pay.
(E) Legal authorities regulate prices.
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Answer from Sia
Posted 10 months ago
Solution
a
Law of Demand: The law of demand states that, ceteris paribus, when the price of a good decreases, the quantity demanded for that good increases, and vice versa
Answer
Answer choice B: "When price decreases, the quantity demanded increases."
Key Concept
Law of Demand
Explanation
The law of demand describes the inverse relationship between price and quantity demanded.
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