The basic law of demand says that all other things being the same,_______________________.
A)The lower the price of a product,the less of it consumers will purchase
B)The higher the price of a product,the less of it consumers will purchase
C)The lower the price of a product,the more of it consumers will purchase
D)The higher the price of a product,the more of it consumers will purchase
E)The greater the number of units of a product sold in the past,the more of it consumers will purchase that product in the future

Question

Quizplus · Accepted Answer

The basic law of demand states that as the price of a product decreases, the quantity demanded of that product will increase, ceteris paribus (with all other factors remaining constant). This means that there is an inverse relationship between price and quantity demanded. So, Choice C - the lower the price of a product, the more of it consumers will purchase - is the correct answer.

The Basic Law of Demand Says That All Other Things