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Question
The Law of Demand shows the relationship between ______.
Options
income and price
price and quantity demanded
income and quantity demanded
quanitity demanded and quantity supplied
Solution
The Law of Demand shows the relationship between price and quantity demanded.
Explanation:
The Law of Demand shows the relationship between the price of a good or service and the quantity demanded by consumers. According to the law, all else being equal, as the price of a good decreases, the quantity demanded increases, and vice versa.
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