The Law of Demand encompasses all the given statements: it arises from consumers' limited incomes and substitution capabilities (A), does not directly address how changes in the number of buyers or their tastes affect demand (B), and indicates an inverse relationship between price changes and quantity demanded (C).

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The Law of Demand

Question 12

Multiple Choice

The Law of Demand:

A) is a result of buyers' limited incomes and their abilities to substitute one product for another.
B) does not indicate how the number of buyers or their tastes affect the demand for a product.
C) states that changes in the price of a product and changes in the amount demanded are inversely related.
D) all of the above.

Correct Answer: