Final answer:
The statement is false. The Law of Demand applies to all goods and services, not just inferior goods.
Step-by-step explanation:
The statement that the Law of Demand can only be violated if a good is inferior is False. The Law of Demand applies to all goods and services, not just inferior goods.
The Law of Demand states that, all other factors being equal, as the price of a good or service increases, the quantity demanded decreases, and as the price decreases, the quantity demanded increases.
For example, if the price of a luxury handbag increases, people may be less likely to purchase it, leading to a decrease in the quantity demanded. Conversely, if the price of a popular cell phone decreases, more people may choose to buy it, resulting in an increase in the quantity demanded.