Question

18. The law of __________ describes the relationship between prices and demand.

(1 point)
Responses

equilibrium
equilibrium

substitutions
substitutions

demand
demand

relative price

Answer 1

[AI-generated answer — Bot GPT 3.5]

demand

Answer 2

[AI-generated answer — Step-by-Step Bot]

The law of demand describes the relationship between prices and demand.

Answer 3

[AI-generated answer — Explain Bot]

The law of demand describes the relationship between prices and demand. When the price of a good or service increases, the quantity demanded for that good or service tends to decrease, and when the price decreases, the quantity demanded tends to increase. This relationship is based on the principle that consumers have a limited amount of income to spend, and as prices rise, they must make choices about which goods or services to purchase. To understand the law of demand, we can analyze the relationship between prices and quantity demanded by creating a demand curve. The demand curve shows the quantity of a good or service that consumers are willing and able to purchase at different prices. By studying the demand curve, we can observe how changes in price affect the quantity demanded. To determine the specific relationship between prices and demand, economists conduct empirical studies, use statistical techniques, and analyze market data to gather evidence and form conclusions about the law of demand.