The Law of Demand refers to:
A) a shift in the demand curve that occurs when a variable other than the good's own price changes
B) movement along a given good's demand curve when the price of that good changes, but other variables do not.
C) the proposition that that price and quantity demanded can be expected to be inversely related so that consumers will be willing and able to buy more of a good at lower prices that they are at higher prices.
D) a functional relationship between the various possible prices of a good and the quantity supplied by sellers of it per time period.
E) the amounts of a good that that consumers are willing and able to buy and other relevant variables such as income or the prices of other goods.

Question

Quizplus · Accepted Answer

The Law of Demand states that there is an inverse relationship between the price of a good and the quantity demanded of that good. This means that as the price of a good decreases, the quantity demanded of that good will increase, and vice versa. This relationship holds assuming all other factors (such as income and the prices of other goods) remain constant. The Law of Demand is depicted graphically by a downward-sloping demand curve.

The Law of Demand Refers To