Question

The law of demand implies

A. consumers are not responsive to changes in the price of products.
B. consumers will buy more of a product at higher prices, all else equal
C. consumers will buy less of a product at higher prices, all else equal.
D.sellers will offer more of their product for sale at higher prices, all else equal.

Answer 1

The law of demand suggests that higher prices lead to reduced quantity demanded since the opportunity cost of purchasing the good increases, making consumers less likely to buy it.

Step-by-step explanation:

The law of demand implies that consumers will buy less of a product at higher prices, all else equal. When prices go up, the opportunity cost of purchasing that good also rises, leading consumers to avoid the product in favor of something else they value more. Conversely, when the price of a good decreases, consumers are more likely to purchase more of it as the opportunity cost is lower.