Which statement best explains the law of demand?A. The quantity demanded by consumers increases as prices rise, then decreases as prices fall.D. The quantity demanded by consumers decreases as prices rise, then increases as prices fall.C. The quantity demanded by producers increases as prices rise, then decreases as prices fall.D. The quantity demanded by producers decreases as prices rise, then increases as prices fall.
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The quantity demanded by consumers decreases as prices rise, then increases as prices fall
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Option B i.e the quantity demanded by the consumers decreases as price rise , then increases as rice falls is the correct answer.
If the price of commodity is high, the people purchases it less as compared to when the price is low. So the law of demand says quantity demanded by consumers increase when price falls and vice-versa.
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