Question

Hich best explains how the law of demand affects consumers?

It helps consumers know when prices are going down.
It helps consumers know when prices are going up.
It helps consumers tell producers when prices are too high.
It helps consumers tell producers when to make new goods.

Answer 1

It helps consumers tell producers when prices are too high.

Step-by-step explanation:

The law of demand affirms that an increase in price results in reduced demand. It means that when prices increase, consumers will buy fewer quantities of a product or service. The law of demand shows the relationship between price and the quantity of a product consumers are willing to buy in the market.

Consumers can communicate with producers through the volume of products purchased. When the quantity purchased is low, producers will know the set prices are high.