The law of demand asserts that:
A)output prices are more important than input prices.
B)when people want a good badly enough they will find a way to pay for it.
C)people want to buy more of goods that are priced very high because of their prestige.
D)the quantity of a good that people will buy is inversely related to the product's price.

Question

The law of demand asserts that:
A)​output prices are more important than input prices.
B)​when people want a good badly enough they will find a way to pay for it.
C)​people want to buy more of goods that are priced very high because of their prestige.
D)​the quantity of a good that people will buy is inversely related to the product's price.

Quizplus · Accepted Answer

The law of demand states that as the price of a good increases, the quantity demanded of that good will decrease. This is because consumers will substitute other goods that are relatively less expensive or reduce their overall consumption of the good. Thus, there is an inverse relationship between price and quantity demanded. The other choices (A, B, and C) are not accurate statements of the law of demand.

The Law of Demand Asserts That