The explanation for the law of demand involves:
A) suppliers' ability to substitute inputs.
B) consumers' ability to substitute different goods.
C) the government's ability to set prices.
D) the market's ability to equate supply and demand.

Question

Quizplus · Accepted Answer

The law of demand states that, all else being equal, as the price of a good decreases, the quantity demanded increases, and vice versa. This is partly because consumers can substitute cheaper goods for more expensive ones.

The Explanation for the Law of Demand Involves