According to the ____________ when prices decreases, demand rises, and when price increases, demand falls.

law of Diminishing Marginal Utility

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law of supply

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law of demand

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elasticity of demand

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Solution

The correct option is C law of demand
The law of demand defines that there is an inverse relation between the price of a commodity and quantity demanded of the commodity. So when price increases, the quantity demanded decreases and vice-versa.

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Similar questions

Q. “The Law of Demand states other things being equal, the quantity demanded of a commodity increases when its price falls and decreases when its price rises. There are several assumptions of the Law of Demand.”
If we refer to the determinants of demand, then ‘other things’ in the Law of Demand refers to which of the following?

[1 mark]

Q. “The Law of Demand states other things being equal, the quantity demanded of a commodity increases when its price falls and decreases when its price rises. There are several assumptions of the Law of Demand.”
Which of the following is an assumption of the Law of Demand?

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An increase in demand leads to a decrease in both the equilibrium price and the equilibrium quantity. A decrease in demand leads to a rise in both the equilibrium price and the equilibrium quantity.

Q. When the price of a commodity rises the demand will fall.

A vertical straight line demand curve shows that demand rises to infinity even when price remains constant.

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According to the ____________ when prices decreases, demand rises, and when price increases, demand falls.

The correct option is C law of demandThe law of demand defines that there is an inverse relation between the price of a commodity and quantity demanded of the commodity. So when price increases, the quantity demanded decreases and vice-versa.

The correct option is C law of demand
The law of demand defines that there is an inverse relation between the price of a commodity and quantity demanded of the commodity. So when price increases, the quantity demanded decreases and vice-versa.