The Law of Demand states that a lower price leads to higher demand, while a higher price leads to lower demand, indicating an inverse relationship between price and quantity demanded. Options: True False
Business · Middle School · Thu Feb 04 2021
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True. The Law of Demand indeed states that there is an inverse relationship between the price of a good or service and the quantity demanded by consumers. This means that as the price of an item decreases, consumers will demand a greater quantity of it, and conversely, as the price increases, the quantity demanded will decrease, all else being equal.