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AlekseyPX
3 years ago
15

The law of demand states that:

Business
1 answer:
denis-greek [22]3 years ago
6 0

Answer: The law of demand States that as price falls, quantity demanded increases and vice versa. (A).

Explanation:

In Economics, the law of demand states that all other things being equal; as the price of a good or commodity or service increases (↑), the quantity of the good/service demanded declines (↓); also, as the price of a good/service declines (↓), the quantity demanded increases (↑).

In other words, the law of demand shows an inverse relationship between the price and quantity demanded of a good/service.

Consequently, other things being constant, the quantity demanded of a good/service is inversely proportional to the price of the good/service.

For example if the price of a luxurious car falls it would motivate the buyers to rush to get a car. This law of demand is also used by marketers to attract buyers by the use of discount on goods.

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