The law of demand indicates that
A) every physical good has a use.
B) when people want a good badly enough, they will find a way to pay for it.
C) the desire for a good is unrelated to its price.
D) the quantity of a good that people will buy is inversely related to the price of the good.

Question

Quizplus · Accepted Answer

The law of demand states that there is an inverse relationship between the price of a good and the quantity of that good that consumers are willing and able to buy. As the price of a good increases, the quantity demanded will decrease, and as the price of a good decreases, the quantity demanded will increase. This suggests that consumers will respond to changes in price in a predictable way, and that price is a key factor in determining the quantity of a good that will be demanded.

The Law of Demand Indicates That