**Understanding the Law of Demand**The Law of Demand pretty much means that if the price is high, then the demand is low, and if the price is low, then demand is high. **Is this true? Please back up your answer.**The Law of Demand indicates an inverse relationship between the price of a good or service and the quantity demanded. Typically, as prices decrease, consumers are more likely to purchase more of the product due to increased affordability. Conversely, as prices increase, demand tends to decline as the product becomes less affordable. This concept is fundamental in economics, highlighting the predictable behavioral patterns of consumers in response to price changes.

Demand shows the amount of goods and services a consumer is willing and able to buy at different prices.The given statement is false. Law of demand states that there is a negative relationship between price and quantity demanded. Increase in price will lead to lower quantity demanded whereas decrease in price leads to higher quantity demanded.This is the reason the demand curve slopes downward.

Answered: Law of demand pretty much means that if…

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Law of demand pretty much means that if price is high then the demand is low, and if price is low then demand is low Is this true? and please back up your answer

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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**Understanding the Law of Demand**

The Law of Demand pretty much means that if the price is high, then the demand is low, and if the price is low, then demand is high.

**Is this true? Please back up your answer.**

The Law of Demand indicates an inverse relationship between the price of a good or service and the quantity demanded. Typically, as prices decrease, consumers are more likely to purchase more of the product due to increased affordability. Conversely, as prices increase, demand tends to decline as the product becomes less affordable. This concept is fundamental in economics, highlighting the predictable behavioral patterns of consumers in response to price changes.

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