A change in the price of a good or service leads to a change in quantity demanded of the good.

Question

Quizplus · Accepted Answer

This is the basic law of demand, which states that there is an inverse relationship between the price of a good or service and the quantity of that good or service that consumers are willing and able to purchase. As the price of a good increases, the quantity demanded decreases, and conversely, as the price of a good decreases, the quantity demanded increases.

A Change in the Price of a Good or Service