The reason that the law of demand exists is that

Question

Quizplus · Accepted Answer

The law of demand states that as the price of a good or service increases, the quantity demanded by consumers decreases, and vice versa. This is because consumers tend to substitute cheaper products for more expensive ones, which causes a decrease in demand for the more expensive product. Therefore, option B is the correct answer. Option A is incorrect because it refers to the advantages of specialization, which is not related to the law of demand. Option C is incorrect because it refers to the law in a different context. Option D is incorrect because higher prices can reduce demand to the point where producer profits are affected.

The Reason That the Law of Demand Exists Is That