Question

Select the correct answer. What does the law of demand state? A. When the price is higher, the quantity demanded is higher. B. When the price is higher, the quantity supplied is lower. C. When the price is lower, the quantity demanded is higher.

Answer 1

The correct answer is C. When the price is lower, the quantity demanded is higher. The law of demand states that there is an inverse relationship between the price of a product and the quantity demanded of that product. When the price of a product decreases, consumers are typically willing and able to purchase more of it, leading to an increase in the quantity demanded. Conversely, when the price of a product increases, consumers tend to demand less of it, resulting in a decrease in the quantity demanded.

Explanation: