Other things being equal, an increase in the price of a good leads to a decrease in the amount people purchase. This is known as
A)the law of demand.
B)the law of supply.
C)ceteris paribus.
D)equilibrium.

Question

Quizplus · Accepted Answer

The statement given in the question aligns with the law of demand, which states that all other things being equal, as the price of a good increases, the quantity demanded of that good decreases. Therefore, the correct answer is A, the law of demand. The other options are not relevant to the given scenario.

Other Things Being Equal, an Increase in the Price of a Good