The law of demand states that, all else held equal:
A) quantity demanded rises as price falls.
B) quantity demanded rises as price rises.
C) quantity demanded rises as income rises.
D) demand rises as price falls.

Question

Quizplus · Accepted Answer

The law of demand states that as the price of a good or service increases, the quantity demanded decreases, and vice versa, all else held equal. This means that choice A is the correct answer as it describes the inverse relationship between price and quantity demanded.

The Law of Demand States That, All Else Held Equal