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Which statement is true about the law of demand?
- a)Income rises, demand rises
- b)Price rises, demand rises
- c)Price falls, demand falls
- d)Price falls, demand rises
Correct answer is option 'D'. Can you explain this answer?
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Which statement is true about the law of demand?a)Income rises, demand...
Law of Demand
The law of demand states that there is an inverse relationship between the price of a good and the quantity of the good that consumers are willing to purchase. In other words, as the price of a good increases, the quantity demanded of that good decreases, and vice versa.
True Statement
The true statement about the law of demand is that when the price of a good falls, the quantity demanded of that good rises. This relationship holds true for most goods, and is known as the law of demand.
Explanation
When the price of a good falls, consumers are more likely to purchase that good because it is now more affordable. As a result, the quantity demanded of that good rises. Conversely, when the price of a good rises, consumers are less likely to purchase that good because it is now more expensive. As a result, the quantity demanded of that good falls.
This inverse relationship between price and quantity demanded is a fundamental concept in economics, and is used to explain a wide range of economic phenomena, from the behavior of individual consumers and firms to the workings of entire markets.
Conclusion
In conclusion, the true statement about the law of demand is that when the price of a good falls, the quantity demanded of that good rises. This relationship is a fundamental concept in economics, and is used to explain a wide range of economic phenomena.
The law of demand states that there is an inverse relationship between the price of a good and the quantity of the good that consumers are willing to purchase. In other words, as the price of a good increases, the quantity demanded of that good decreases, and vice versa.
True Statement
The true statement about the law of demand is that when the price of a good falls, the quantity demanded of that good rises. This relationship holds true for most goods, and is known as the law of demand.
Explanation
When the price of a good falls, consumers are more likely to purchase that good because it is now more affordable. As a result, the quantity demanded of that good rises. Conversely, when the price of a good rises, consumers are less likely to purchase that good because it is now more expensive. As a result, the quantity demanded of that good falls.
This inverse relationship between price and quantity demanded is a fundamental concept in economics, and is used to explain a wide range of economic phenomena, from the behavior of individual consumers and firms to the workings of entire markets.
Conclusion
In conclusion, the true statement about the law of demand is that when the price of a good falls, the quantity demanded of that good rises. This relationship is a fundamental concept in economics, and is used to explain a wide range of economic phenomena.
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Which statement is true about the law of demand?a)Income rises, demand...
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Which statement is true about the law of demand?a)Income rises, demand risesb)Price rises, demand risesc)Price falls, demand fallsd)Price falls, demand risesCorrect answer is option 'D'. Can you explain this answer?
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