The Law of Demand explains why ________.
A) the price elasticity of demand has a positive value
B) the income elasticity of demand has a positive value
C) the price elasticity of demand has a negative value
D) the income elasticity of demand has a negative value

Question

Quizplus · Accepted Answer

The Law of Demand states that quantity demanded of a good or service decreases as the price of that good or service increases, assuming all other factors remain constant. This inverse relationship between price and quantity demanded is reflected by a negative value for the price elasticity of demand.

The Law of Demand Explains Why ________