Which statement best explains the law of demand?

O

The quantity demanded by consumers increases as prices rise, then decreases as prices fall.

The quantity demanded by consumers decreases as prices rise, then increases as prices fall.

The quantity demanded by producers increases as prices rise, then decreases as prices fall.

ty demanded by producers decreases as prices rise, then increases as prices fall.

O

Question

Rebel

Business

24 July, 17:18

Which statement best explains the law of demand?

O

The quantity demanded by consumers increases as prices rise, then decreases as prices fall.

The quantity demanded by consumers decreases as prices rise, then increases as prices fall.

The quantity demanded by producers increases as prices rise, then decreases as prices fall.

ty demanded by producers decreases as prices rise, then increases as prices fall.

O

+5

Answers (1)

Know the Answer?

Tianna Bradley · Answer 1

The quantity demanded by consumers decreases as prices rise, then increases as prices fall.

Explanation:

Demand refers to the quantity of products and services that consumers are willing and able to buys at a specific price. A customer must afford to pay and is ready to buy the product or service for it to be considered to be in demand.

According to the law of demand, there is an inverse relationship between demand and the price of a product. Should the price increase, demand moves in the opposite direction. A decrease in price will lead to a rise in demand. Customers will afford a larger quantity than before. Potential customers who could not afford the product can now buy it, thereby increasing demand.