The Law of Supply and Demand

Question 7 of 10 • KY-Economics

Which statement best explains the law of demand?

Answer

The quantity demanded by consumers increases as prices rise, then decreases as prices fall.

The quantity demanded by consumers decreases as prices rise, then increases as prices fall.

The quantity demanded by producers increases as prices rise, then decreases as prices fall.

The quantity demanded by producers decreases as prices rise, then increases as prices fall.

The Law of Supply and Demand

2.1 The Law of Supply and Demand

Determining Market Price