18. The law of __________ describes the relationship between prices and demand. (1 point) Responses relative price relative price substitutes substitutes equilibrium equilibrium demand
18. The law of demand describes the relationship between prices and demand.
The law of demand describes the relationship between prices and demand.
The law that describes the relationship between prices and demand is called the law of demand. It states that, all other factors being equal, when the price of a good or service increases, the quantity demanded decreases, and vice versa. In other words, there is an inverse relationship between price and quantity demanded.
To understand the law of demand, economists usually use a demand curve, which shows the quantity of a good or service that consumers are willing and able to buy at different prices. This curve slopes downward from left to right, indicating that as price decreases, quantity demanded increases and vice versa.
To identify the law of demand when looking at a graph or a table, you need to observe the movement of the demand curve or the relationship between price and quantity demanded. If you notice that as the price of a good or service increases, the quantity demanded decreases, then it aligns with the law of demand.
So, the correct answer to the question is "demand."