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According to the law of demand, which of the following is true?

A) If prices decrease, customers will buy more.
B) Customers are not aware of small price changes.
C) The effect on demand from changes in price cannot be accurately predicted.
D) Demand equals supply.
E) If prices increase, customers will buy more.

User LIGHT
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1 Answer

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Final answer:

According to the law of demand, if prices decrease, customers will buy more because the opportunity cost of buying the product is lower compared to when prices are higher. option a is answer

Step-by-step explanation:

The law of demand is a fundamental principle in economics which suggests a relationship between the price of a product and the demand for that product. According to the law of demand, the correct answer to the question is: A) If prices decrease, customers will buy more. When prices fall, consumers are more likely to increase their quantity demanded because the opportunity cost of forgoing other goods is lower.

Conversely, when prices rise, the quantity demanded tends to decrease as consumers begin to forgo the purchase in favor of potentially more affordable alternatives. This is because as the price goes up, so does the opportunity cost related to purchasing the product. option a is answer

User Fhofmann
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