The Law of Demand is based on the concept that people ________.
- Abuy more of a good as their income increases.
- Bbuy more of a good as the price of the good falls.
- Cwill spend all of their money on something.
- Dwant more of everything even if they have no money to buy anything.
Solution & Step-by-step Explanation
The Law of Demand states that, ceteris paribus (other factors remaining constant), there is an inverse relationship between price and quantity demanded. This means consumers buy more of a good when its price falls and less when its price rises.