The demand curve shows that price and quantity demanded are -

A. directly related only
B. directly proportional and also directly related
C. inversely proportional and aslo inversely related
D. inversely related only
Answer» C. inversely proportional and aslo inversely related
Explanation: Law of demand states that consumers buy more of a good when its price is lower and less when its price is higher. It states that the quantity demanded and the prices of a commodity are inversely related, other things remaining constant. That is, if the income of the consumer, prices of the related goods, and preferences of the consumer remain unchanged, then the change in quantity of good demanded by the consumer will be negatively correlated to the change in the price of the good.
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