Question

For normal goods, Law of Demand states the ............. relationship between price of goods and quantity of goods.

• A. Direct
• B. Positive
• C. Inverse
• D. None of these

Hint:

Law of Demand: Price goes up, Demand goes down. Price goes down, Demand goes up. This is an inverse relationship.

Answer 1

The Correct Option is C

The Law of Demand states that, other things being equal (ceteris paribus), the quantity demanded of a normal good is inversely related to its price. This means that as the price of a good increases, the quantity demanded decreases, and as the price decreases, the quantity demanded increases. "Inverse" and "negative" describe this relationship, while "direct" and "positive" would imply that price and quantity move in the same direction.