Which statement is true?
A)The law of demand typically holds because an individual consumer's demand curve is derived holding income constant.
B)The law of demand always holds in every market.
C)The law of demand suggests an inverse relationship between price and the quantity demanded.
D)The law of demand suggests that the demand curve for an individual is upward sloping, due to diminishing MB.
E)None of the above.

Question

Quizplus · Accepted Answer

The law of demand indeed posits an inverse relationship between the price of a good or service and the quantity demanded by consumers. As prices increase, the quantity demanded typically decreases, and vice versa, reflecting consumers' sensitivity to price changes.

Which Statement Is True