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Question
State whether the following statement is true or false. Give reasons.
The law of demand states a direct relationship between price and demand.
Options
True
False
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Solution
This statement is false.
Explanation:
No, the law of demand does not establish a direct relation. However, the law of demand maintains that there is an inverse relationship between price and quantity demanded of an item, meaning that as price rises, quantity demanded of a good decreases.
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