Question : Law of Demand defines the relationship between price and quantity of commodities for typical goods as follows:
Option 1: Positive
Option 2: Constant
Option 3: Negative
Option 4: None of the above
Answer (1)
13th Jan, 2024
Correct Answer: Negative
Solution : According to the law of demand, the quantity bought varies inversely with the price. In other words, the quantity demanded decreases as the price increases. Because of declining marginal utility, this happens.
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