Advertisements
Advertisements
Question
The law of demand states that with a fall in the price of a good, there is ______.
Options
decrease in the quantity demanded
increase in the quantity demanded
increase in demand
decrease in demand
MCQ
Fill in the Blanks
Advertisements
Solution
The law of demand states that with a fall in the price of a good, there is increase in the quantity demanded.
Explanation:
The law of demand states that, other things remaining constant, when the price of a good falls, the quantity demanded increases, and when the price rises, the quantity demanded decreases. This shows an inverse relationship between price and quantity demanded.
shaalaa.com
Is there an error in this question or solution?
