Which statement is consistent with the law of demand? A reduction in market price will lead to an increase in quantity demanded. An increase in market price will lead to an increase in quantity demanded. At a zero price, quantity demanded will be equal to zero. A reduction in market price will lead to a decrease in quantity demanded.

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Yuliana Bond

28 September, 15:52

Which statement is consistent with the law of demand? A reduction in market price will lead to an increase in quantity demanded. An increase in market price will lead to an increase in quantity demanded. At a zero price, quantity demanded will be equal to zero. A reduction in market price will lead to a decrease in quantity demanded.

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Precious Moran · Answer 1

The correct answer is: A reduction in market price will lead to an increase in quantity demanded.

Explanation:

The law of demand states that other things being constant, a reduction in the market price will lead to an increase in the quantity demanded of a commodity. On the other hand, an increase in the price will cause a decline in the quantity demanded.

The other factors that are assumed to be constant are the income of the consumer, population, price of other goods, preferences, and tastes of the consumer.