According to the law of demand. When ?
Correct answer: A. Price increase demand decreases
- A. Price increase demand decreases
- B. Price decreases demand decreases
- C. Price increased demand increases
- D. None of these
Explanation
The law of demand states that, other things remaining constant, a rise in price causes quantity demanded to fall. This inverse price-quantity relationship makes option a correct.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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