Answered

Which of the following statements about the law of demand is true? Pg. 104
O a
O b
Ос
○ d
as price goes up, quantity supplied goes down
as price goes down, demand goes down
as price goes down, quantity demanded goes up
as demand goes up, supply goes down



Answer :

GinnyAnswer
The correct statement about the law of demand is:

as price goes down, quantity demanded goes up.

This statement reflects the inverse relationship between price and quantity demanded. When the price of a good or service decreases, consumers are generally willing and able to buy more of that good or service. This is because lower prices make the product more affordable, leading to an increase in demand.

For example, if the price of smartphones decreases, more people may be inclined to purchase them, resulting in a higher quantity demanded. Conversely, if the price of smartphones increases, fewer people may be willing to buy them due to the higher cost, leading to a decrease in quantity demanded.

Understanding the law of demand is essential in economics as it helps explain consumer behavior and the impact of price changes on market demand.