The law of demand
A) is only an assumption that cannot be tested.
B) only applies to necessities, not luxuries.
C) is consistent with human behavior in the world.
D) does not apply to scarce goods.

Question

Quizplus · Accepted Answer

The law of demand states that as the price of a good or service increases, the quantity demanded decreases, while as the price of a good or service decreases, the quantity demanded increases. This concept is consistent with human behavior and has been observed in the world. The law of demand applies to all goods, not just necessities, and is a fundamental concept in economics. Therefore, option A, B, and D are incorrect.

The Law of Demand