The law of demand refers to the:

Question

Quizplus · Accepted Answer

The law of demand states that there is an inverse relationship between the price of a good and the quantity demanded, meaning that as the price of a good increases, the quantity demanded will decrease, and as the price of a good decreases, the quantity demanded will increase. Option A is incorrect because it describes the law of supply, which states that as the quantity supplied of a good increases, the price will decrease. Option B is incorrect because it describes the concept of scarcity, not the law of demand. Option D is incorrect because it describes the law of supply and not the law of demand. Option E is incorrect because it describes a direct relationship between price and quantity demanded, which is the opposite of what the law of demand proposes.

The Law of Demand Refers to The