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    Question

    The law of demand states that, other things being

    equal:
    A Quantity demanded varies inversely with price. Correct Answer Incorrect Answer
    B Quantity demanded varies directly with price. Correct Answer Incorrect Answer
    C Demand varies inversely with price. Correct Answer Incorrect Answer
    D Demand varies directly with price. Correct Answer Incorrect Answer
    E Quantity demanded is independent of price. Correct Answer Incorrect Answer

    Solution

    The law of demand states that as the price of a good increases, the quantity demanded decreases, and vice versa, assuming all other factors remain constant.

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