The "law of demand" refers to the fact that, all other things remaining the same, when the price of a good rises

Question

Quizplus · Accepted Answer

According to the "law of demand," when the price of a good rises, the quantity demanded of that good decreases. This means that there is a movement up along the demand curve to a smaller quantity demanded. Therefore, choice B is the correct answer. Choices A and C are incorrect because they suggest that the entire demand curve shifts, rather than a movement along the curve. Choice D is incorrect because it suggests that an increase in price leads to an increase in quantity demanded, which is the opposite of the "law of demand."

The "Law of Demand" Refers to the Fact That, All