The Law of Demand primarily reflects how consumers respond to price changes, considering their limited incomes and the availability of substitutes, which allows them to switch from one product to another if the price of the first product increases.

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The Law of Demand

Question 11

Multiple Choice

The Law of Demand:

A) indicates how buyers react to changes in all factors affecting their purchasing decisions.
B) is a result of limited incomes and buyers' abilities to substitute one product for another.
C) states that changes in the price of a product and changes in the amount demanded are directly related.
D) all of the above.

Correct Answer: