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Verdich [7]
4 years ago
15

What is the relationship between the price of an item and the quantity demand

Social Studies
1 answer:
Nikitich [7]4 years ago
5 0

Answer:

The Law of Supply

The Law of Demand

Explanation:

The law of supply states that the quantity of a good supplied rises as the market price rises, and falls as the price falls. Conversely, the law of demand  says that the quantity of a good demanded falls as the price rises, and vice versa.

Hope this helps :)

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According to the Law of Demand, whenever there is an increase in price of a commodity then the demand for that commodity decreases. This is also true vice-versa. The price and demand for the commodity shares an inverse relation.  

There are many things which determine a demand like income of a consumer, preferences to buy a product and making a decision to buy a substitute for a product.

The questions regarding the supply of a product matching its demand in the market and setting the market prices are all answered by the law of demand and supply.

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3 years ago
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