Answer to Question #193603 in Economics for Mike

Question

According to the law of demand, the ________ the price of a good, all other factors 

remaining the same, the _________ the quantity demanded. 

[1] higher; lower

[2] lower; lower

[3] higher; higher

[4] none of the above

Answer 1

According to the law of demand, there is an inverse relationship between the price and quantity, so the higher the price of a good, all other factors 

remaining the same, the lower the quantity demanded. 

So, the correct answer is [1].