Which statement expresses the law of demand? There is a positive relationship between price and quantity that buyers are willing and able to purchase. There is a positive relationship between price and consumer surplus. There is an inverse relationship between the willingness to pay and the ability to pay. There is a negative relationship between price and quantity demanded.

Question

Business

Linda Ryan

7 September, 18:58

Which statement expresses the law of demand? There is a positive relationship between price and quantity that buyers are willing and able to purchase. There is a positive relationship between price and consumer surplus. There is an inverse relationship between the willingness to pay and the ability to pay. There is a negative relationship between price and quantity demanded.

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Answers (2)

Know the Answer?

Isabela Bruce · Answer 1

There is a negative relationship between price and quantity demanded.

Explanation:

When the price goes up, the quantity demand goes down. When the price goes down people purchase more.

Nikhil Terry · Answer 2

The correct answer is letter "D": There is a negative relationship between price and quantity demanded.

Explanation:

The demand law states as long as the price of a good or service increases the quantity demanded decreases and the supply curve shifts leftwards. In case the price of products decrease, the quantity demanded increase and the demand curve moves to the right. In such a scenario, the demand law studies an inverse proportional relationship between price and quantity demanded. The relationship can also be labeled as negative.