Question

The Law of Demand, assuming other things to remain constant, establishes the relationship between.

• A. Income of the consumer and the quantity of a good demanded by him
• B. Price of a good and the quantity demanded
• C. Price of a good and the demand for its substitute
• D. Quantity demanded of a good and the relative prices of its complementary goods

Answer 1

Answer: (B)

Price of a good and the quantity demanded

1:The Law of Demand, assuming other things to remain constant, establishes the relationship between price of a good and the quantity demanded.
2:Law of demand states that, "conditional on all else being equal, as the price of a good increases (↑), quantity demanded decreases (↓); conversely, as the price of a good decreases (↓), quantity demanded increases (↑)".