Question

What is the relationship between price of a commodity and the demand for it?

• A. It is a positive relationship
• B. It is an inverse relationship
• C. They are independent of each other
• D. They do not have any relationship

Answer 1

The correct option is B It is an inverse relationship

As the price of any commodity increases the demand for that commodity decrease because it becomes expensive for the consumers. Similarly as the price of commodity decreases then demand for it increases because more of it could be bought

.Hence the relationship between price and demand of a commodity is inversely related.