According to the law of demand, what happens as the price of a good increases?
A) More of it is produced.
B) Buyers desire to purchase less of it.
C) More of it is desired.
D) Suppliers wish to sell less of it.

Question

Quizplus · Accepted Answer

According to the law of demand, as the price of a good increases, buyers desire to purchase less of it. This is because as the price goes up, the opportunity cost of purchasing the good also goes up, making it less attractive to buyers. As a result, demand decreases.

According to the Law of Demand, What Happens as the Price