Question

According to the law of demand, during a given period of time, the quantity of a good demandeda. Increases as its price rises, ceteris paribus.b. Increases as its price falls, ceteris paribus.c. Decreases as its price falls, ceteris paribus.d. Does not change when price changes.

Answer 1

Answer:

B) Increases as its price falls, ceteris paribus.

Explanation:

The laws of demand and supply are fairly simple:

• law of demand: as the price of a good or service decreases, the quantity demanded for the good or service increases
• law of supply: as the price of a good or service increases, the quantity supplied for the good or service increases