What does the law of demand suggest?A.Sellers increase their supply of a product as its price increases.B.Buyers increase their demand for a product as its price increases.C.Buyers increase their demand for a product as its price decreases.D.Sellers increase their supply of a product as its price decreases.SUBMITarrow_backPREVIOUS
Question
What does the law of demand suggest?A.Sellers increase their supply of a product as its price increases.B.Buyers increase their demand for a product as its price increases.C.Buyers increase their demand for a product as its price decreases.D.Sellers increase their supply of a product as its price decreases.SUBMITarrow_backPREVIOUS
Solution
The law of demand suggests that C. Buyers increase their demand for a product as its price decreases. This is because the law of demand states that, if all other factors remain equal, the higher the price of a good, the less people will demand that good. In other words, the higher the price, the lower the quantity demanded. The amount of a good that buyers purchase at a higher price is less because as the price of a good goes up, so does the opportunity cost of buying that good. As a result, people will naturally avoid buying a product that will force them to forgo the consumption of something else they value more.
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The "law of demand" implies thatA.as prices fall, demand increases.B.as prices rise, quantity demanded increases.C.as prices rise, demand increases.D.as prices fall, quantity demanded increases.
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