Question

Suppose the price of eggs decreases from $5 per dozen to $4 per dozen. According to the law of –, we should expect the – to increase.

Answer 1

Demand; Quantity Demanded

Step-by-step explanation:

According to the law of demand,

Law states that there is a negative or inverse relationship between the price of the good and the quantity demanded for that good which means that an increase in the price of a good will result in a fall in quantity demanded for that good and a decrease in the price level of the good will result in an increase in the quantity demanded for that good.

In our case, the price of eggs falls from $5 per dozen to $4 per dozen then as a result there is an increase in the quantity demanded for the eggs.