Question

What type of relation is between Price and Demand ?

• A. positive
• B. wrong
• C. very close
• D. negative

Hint:

Negative relation = Inverse relation. This leads to a downward sloping demand curve with a negative slope.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
The "Law of Demand" describes the functional relationship between the price of a good and the quantity consumers are willing to buy.
Step 2: Detailed Explanation:
The Law of Demand states that, ceteris paribus (all other things being equal), as the price of a good increases, the quantity demanded decreases. Conversely, as the price decreases, the quantity demanded increases.
Since the two variables move in opposite directions, the relationship is termed inverse or negative.
Graphically, this results in a demand curve that slopes downwards from left to right.
Step 3: Final Answer:
The inverse relationship between price and quantity demanded is mathematically represented as a negative relation.