The Law of Demand states that ________.

Question

Quizplus · Accepted Answer

The Law of Demand states that the quantity demanded of a commodity varies inversely with the price of the commodity, holding all other factors constant. In other words, as the price of a good increases, consumers will demand less of it, and vice versa. This is a fundamental concept in economics and is supported by empirical evidence. Option A is incorrect because the relationship between demand and consumers' income is not necessarily direct - it may be positive, negative, or have no relationship at all. Option B is incorrect because the demand and supply of a commodity can be equal only at a specific price, and not always. Option D is incorrect because the quantity demanded of a commodity varies across consumers based on their preferences and willingness to pay.

The Law of Demand States That ________