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Demand is the relationship between price and quantity demanded; the law of demand says as price rises, quantity demanded falls.

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Demand

The law of demand establishes which of the following relationships?

A direct relationship between price and quantity demanded.

An inverse relationship between income and quantity demanded.

An inverse relationship between price and quantity demanded.

A direct relationship between price and demand.

Apply what you've learned with these practice questions. These questions test your understanding of the key concepts.

According to the law of demand, an increase in the price of a good, ceteris paribus, leads to:

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Law of demand: Price and quantity demanded are inversely related; the demand curve slopes down.
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Demand shifts (income, tastes, prices of related goods, expectations, number of buyers) move the whole curve; a price change moves along the curve.
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Quantity demanded is one point on the curve; demand is the entire curve.