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UI Post-UTME Economics 2021 (Model questions) Question 19

Question 19

Theory of Demand

The law of demand implies that .......

  1. A.consumers do not respond to changes in the price of products
  2. B.sellers will offer more of their products for sale at lower prices, ceteris paribus
  3. C.consumers will buy more of a product at higher prices, ceteris paribus
  4. D.consumers will buy less of a product at higher prices, ceteris paribus
Show the answer and explanation

Answer: D (consumers will buy less of a product at higher prices, ceteris paribus)

Explanation

The law of demand: other things equal, the higher the price, the less is bought.