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WAEC Economics 1995 Question 4

Question 4

Theory of Demand

The law of demand states that

  1. A.as price increases, quantity demanded remains constant
  2. B.demand increases as price increases
  3. C.as price falls, quantity demanded also falls
  4. D.as price falls, quantity demanded increases
  5. E.demand and supply remain constant whether price falls or increases
Show the answer and explanation

Answer: D (as price falls, quantity demanded increases)

Explanation

The law of demand: other things equal, the lower the price, the higher the quantity demanded.