Which describe the law of demand?
Select all that apply.
A). As prices go up, the quantity demanded goes up.
B). As prices go down, the quantity demanded goes up.
C). As prices go down, the quantity demanded goes down.
D). As prices go up, the quantity demanded goes down.
The law of demand states that as prices go down, the quantity demanded goes up, and as prices go up, the quantity demanded goes down. So, the correct answers are:
B). As prices go down, the quantity demanded goes up.
D). As prices go up, the quantity demanded goes down.
To understand the law of demand, you can imagine a normal consumer behavior where people tend to buy more of a good or service when its price is lower and less of it when its price is higher. This inverse relationship between price and quantity demanded is what the law of demand explains.