Question 41
Theory of DemandIn a normal (typical) demand schedule, the quantity demanded is
- A.directly related to price
- B.inversely related to price
- C.independent of price
- D.proportionally related to supply
- E.solely dependent on haggling skill.
Show the answer and explanation
Answer: B (inversely related to price)
Explanation
By the law of demand, quantity demanded rises when price falls and falls when price rises.