Question

The Law of Demand is a rule stating that more will be demanded at lower prices and less at higher prices; inverse relationship between price and quantity demanded.

Question 15 options:
True
False

Answer 1

Answer: True

Explanation: In microeconomics, the law of demand states that, "conditional on all else being equal, as the price of a good increases (↑), quantity demanded decreases (↓); conversely, as the price of a good decreases (↓), quantity demanded increases (↑)".[1] In other words, the law of demand describes an inverse relationship between price and quantity demanded of a good