According to the law of demand assuming other factors are he
According to the law of demand, assuming other factors are held constant:
A. As the price of milk increases, the quantity of milk demanded will increase.
B. As the demand for milk increases, the price of milk will also increase.
C. As the price of milk decreases, the quantity of milk demanded will increase.
Solution
Option C is correct
The Law relates price of a good with its quantity demanded such that Q = a - bP where Price and quantity are related in an inverse relation. Quantity demanded is dependent variable so when price is increased, it has to decrease. There are exceptions as well, but the general rule applies in most of the goods.
