The law of demand implies, holding everything else constant, that as the price of ice cream:
A)increases, the demand for ice cream will increase.
B)increases, the quantity of ice cream demanded will increase.
C)decreases, the quantity of ice cream demanded will increase.
D)decreases, the demand for ice cream will increase.

Question

Quizplus · Accepted Answer

The law of demand states that, ceteris paribus (all other factors being constant), when the price of a good decreases, the quantity demanded for that good increases. This is because consumers are more willing to buy more of the good when it is cheaper.

The Law of Demand Implies, Holding Everything Else Constant, That