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The law of demand states that as the price of a particular good or service increases, _____.

A.) demand increases
B.) quantity demanded decreases
C.) demand decreases
D.) quantity demanded increases

1 Answer

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Answer:

The law of demand says that at higher prices, buyers will demand less of an economic good.

The law of supply says that at higher prices, sellers will supply more of an economic good.

These two laws interact to determine the actual market prices and volume of goods that are traded on a market.

Several independent factors can affect the shape of market supply and demand, influencing both the prices and quantities that we observe in markets.

Step-by-step explanation:

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