The 'law of demand' implies that:
As prices fall, quantity demanded increases.
Correct AnswerAs prices rise, quantity demanded increases.
Incorrect AnswerAs prices fall, demand increases.
Incorrect AnswerAs prices rise, demand decreases.
Incorrect AnswerExplanation:
The law of demand states that other factors being constant (cetris peribus), price and quantity demand of any good and service are inversely related to each other. When the price of a product increases, the demand for the same product will fall.
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By: honey kaundal