The law of demand states that the quantity demanded of a good and
A) the price of a substitute are positively related
B) its price are inversely related
C) its price are positively related if it is an inferior good
D) the wealth of buyers are positively related
E) its price are inversely related if it is a normal good

Question

Quizplus · Accepted Answer

The law of demand states that, ceteris paribus (all other things being equal), the quantity demanded of a good is inversely related to its price. This means that as the price of a good increases, the quantity demanded of that good decreases, and vice versa.

The Law of Demand States That the Quantity Demanded of a Good