The tendency for consumers to purchase more of a good or service as its price falls is captured by:
A)the law of supply.
B)the law of increasing cost.
C)the Low-Hanging Fruit Principle.
D)the law of demand.

Question

Quizplus · Accepted Answer

The law of demand states that as the price of a good or service decreases, the quantity demanded for that good or service will increase. This means that consumers are more likely to purchase a good or service when its price decreases, which is known as the price elasticity of demand.

The Tendency for Consumers to Purchase More of a Good