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Answered

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What happens when the price of a good or service increases ?

A. Demand increases
B. Demand decreases
C. Quantity demanded increases
D. Quantity demanded increases

Sagot :

B demand decreases
Explanation: when the price of goods and services are high ,the consumers will most likely not buy these products because consumers want a better bargain and may not be able to afford theses products or services
Chilljain33idn

According to the law of demand, when the price of a good or service increases, the demand for such good or services decreases proportionately. Therefore, the option B holds true.

What is the significance of the law of demand?

The law of demand is a basic law of microeconomics, which deals with the relation between the price and demand of a good or service in an economy. It states that price and demand of a good or service are indirectly in relation with each other.

According to this indirect relation between price and demand, one can easily come to a conclusion that if the price of a good or a service decreases, its demand increases and vice versa.

Therefore, the option B holds true and states regarding the significance of the law of demand.

Learn more about the law of demand here:

https://brainly.com/question/10782448

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