227k views
3 votes
Law of demand shows a relation between the

A. Price and quantity of a commodity
B. Quantity of demand and supply of a commodity
C. Income and demand of a commodity
D. Income and price of a commodity

User Jeti
by
7.9k points

1 Answer

6 votes

Final answer:

The law of demand indicates an inverse relationship between the price of a commodity and the quantity demanded, where a higher price reduces demand, and a lower price increases it.

Step-by-step explanation:

The law of demand highlights the relationship between the price of a commodity and the quantity demanded. Specifically, it explains that there is an inverse relationship where a higher price results in a lower quantity demanded, and conversely, a lower price leads to a higher quantity demanded. This relationship holds true while other variables remain constant. Therefore, the correct answer to the student's question is A. Price and quantity of a commodity.

User Zonella
by
7.5k points