Question

The law of demand states that A. a higher price will lead to increased sales. B. quantity demanded will vary inversely with the price of the good. C. consumers with more income will spend more on goods and services. D. the price can never be too high for some consumers.

Answer 1

Answer:

The correct answer is B. The law of demand states that quantity demanded will vary inversely with the price of the good.

Explanation:

The law of demand states that the value of demand decreases as the price of the product increases, that is, between the value of demand and the price there is an inverse relationship, therefore, an increase in price causes a decrease in demand, and a decrease in price causes an increase in demand.  

Therefore, manufacturers who have decided to produce more should know that an increased number of goods can only be sold at a lower price.

The quantity of goods purchased depends on the price as well as on the average income of the buyers, the size of the market, the price and usefulness of other goods, including substitutes, subjective tastes and preferences of buyers.

Answer 2

Answer: B. quantity demanded will vary inversely with the price of the good

Explanation: The law of demand states that price and quantity demanded of goods and services are inversely related to each other, other factors being constant. As a result, when the price of a product or service falls, the quantity of that product demanded by consumers increases; and with rising prices, quantity demanded falls. It helps explain in part how market economies distribute resources and determine the prices of goods and services.