Question

According to the law of demand, what is the relationship between price and quantity demanded

A Directly proportional Correct Answer Incorrect Answer
B Inversely proportional Correct Answer Incorrect Answer
C Constant Correct Answer Incorrect Answer
D Unrelated Correct Answer Incorrect Answer

Solution

The law of demand states that price and quantity demanded are inversely proportional; as price decreases, quantity demanded increases, and vice versa.

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