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"According to the law of demand, with everything else being equal, the quantity demanded for a good or service will _____________ as the price increases."

User OLP
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1 Answer

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Answer: Decrease

Step-by-step explanation:

According to the Law of Demand, The quantity demanded for purchase of a commodity inversely varies with the price.

That is to say that "ceteris paribus" ( with everything being equal),When the prices of a particular good go higher, people will buy less of such commodity but will buy more, if the prices of the goods reduces.

We can say demand is elastic if quantity demanded for a commodity decreases with increase in price which will make people choose another lower substitute good eg, detergent, ice cream

Also if quantity demanded does not change much with increase in price , then it is referred to as Inelastic Demand for example necessity commodity such as gasoline.