Question

The nature of demand indicates that as the price of a good increases: A) suppliers wish to sell less B) more of it is produced. C) more of it is desired. D) buyers desire to purchase less of it.

Answer 1

The correct answer is letter "D": buyers desire to purchase less of it.

Step-by-step explanation:

The demand law studies the relationship between prices and changes in quantity demanded. As long as the prices increase, the quantity demanded by consumers will decrease -the demand curve shifts to the left. If the prices decrease, instead, the quantity demanded will increase -the demand curve will shift to the right.

In such a scenario, the relationship between price and quantity demanded is inversely proportional.

Answer 2

D) buyers desire to purchase less of it.

Step-by-step explanation:

The law of demand explains the nature of demand. The law asserts that demand for a product or service is indirectly related to its price. An increase or decrease in price results in demand moving in the opposite direction.

The relationship between demand and price can be illustrated graphically through a demand curve, or in a table format by the demand schedule. Both the demand curve and demand schedule shows how the quantity demand responds to changes in price. Because of the inverses relationship, an increase in prices results in a decline in demand