The law of demand states that
A) as the price increases the demand increases (shifts outward).
B) as the price increases the quantity demanded decreases.
C) as the income level of the consumer increases the quantity demanded increases.
D) None of the above is correct.

Question

Quizplus · Accepted Answer

The law of demand states that there is an inverse relationship between the price of a good and the quantity demanded, meaning as the price of a good increases, the quantity demanded decreases, and vice versa. This is reflected in choice B.

The Law of Demand States That