Final answer:
The law of demand states there is an inverse relationship between the price of a good and the quantity demanded, with the correct answer to the question being option B, stating that the quantity of a good demanded is inversely related to its price.
Step-by-step explanation:
The question pertains to the law of demand, which is a fundamental concept in economics. According to the law of demand, there is an inverse relationship between the price of a good or service and the quantity demanded by consumers. That is, when the price of a good increases, the quantity demanded generally decreases, and conversely, when the price decreases, the quantity demanded tends to increase. This principle assumes that all other factors affecting demand remain constant.
Based on the options provided in the question, the correct answer is B. The quantity demanded of a good is inversely related to the changes in its price. This option correctly reflects the principle that a higher price leads to a lower quantity demanded, and a lower price leads to a higher quantity demanded, holding other variables constant. This concept is crucial to understand the behavior of consumers in the market and guides businesses in setting prices for their goods and services.