According to the law of demand,O a. quantity supplied and quantity demanded are positively related.O b. quantity supplied and quantity demanded are negatively related.O c. price and quantity demanded are positively related.O d. price and quantity demanded are negatively related.

Answered: According to the law of demand, a.…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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According to the law of demand,
O a. quantity supplied and quantity demanded are positively related.
O b. quantity supplied and quantity demanded are negatively related.
O c. price and quantity demanded are positively related.
O d. price and quantity demanded are negatively related.

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The law of demand holds that, all other things being equal (cetris peribus), the relationship between price and quantity demanded for any good or service is inverse. A product's price increase causes a decrease in consumer demand for that same product. The demand for a certain good will increase when the price of that good lowers. An economic principle known as the law of demand explains why there is an inverse relationship between the demand for a commodity or service and its price. When a good or service's price rises, less people will buy it, and vice versa, if all other variables stay the same.

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