The "law of demand" predicts that, other things being equal,

Question

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The law of demand states that as the price of a good increases, the quantity demanded of that good will decrease, ceteris paribus (all other factors held constant). Therefore, if the price of pizza increases, people will demand less pizza. Choice A is incorrect because a decrease in price would lead to an increase in the quantity of gasoline demanded, not a decrease. Choice C is incorrect because an increase in price would decrease the quantity of CDs demanded, but not the demand for CDs overall. Choice D is incorrect because a change in the price of coffee would not affect the quantity of tea demanded.

The "Law of Demand" Predicts That, Other Things Being Equal