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

Question

Quizplus · Accepted Answer

According to the law of demand, as the price of a good increases, the quantity demanded of that good will decrease, ceteris paribus. This means that holding everything else constant (such as consumer income or preferences), consumers will be less willing and able to purchase bagels at a higher price. Thus, there will be a decrease in the quantity of bagels demanded.

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