Which of the following correctly states the law of demand?
A) Ceteris paribus, as the quantity of inputs used to produce a good rises, more of the good will be demanded.
B) Ceteris paribus, as the cost of producing a good rises, more of the good will be
C) Ceteris paribus, as the number of sellers in the market fall, more of the good will be demanded.
D) Ceteris paribus, as the price of a good falls, more of the good will be demanded.

Question

Quizplus · Accepted Answer

The law of demand states that, ceteris paribus (all other factors being equal), as the price of a good falls, the quantity demanded of that good increases. This is because consumers are more willing to purchase a good as it becomes cheaper.

Which of the Following Correctly States the Law of Demand