Select all the correct answers.

Which statements are true according to the law of demand?

1. An increase in supply leads to an increase in demand.

2. A decrease in supply leads to a decrease in demand.

3. An increase in price leads to a decrease in quantity demanded.

4. A decrease in price leads to an increase in quantity demanded.

5. An increase in price leads to an increase in demand.

Question

English

Justine Williams

25 October, 12:26

Select all the correct answers.

Which statements are true according to the law of demand?

1. An increase in supply leads to an increase in demand.

2. A decrease in supply leads to a decrease in demand.

3. An increase in price leads to a decrease in quantity demanded.

4. A decrease in price leads to an increase in quantity demanded.

5. An increase in price leads to an increase in demand.

+2

Answers (1)

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Donovan Sanders · Answer 1

Answer choices 4 and 3 are correct. A decrease in price attracts more customers, therefore an increase in the demand for that item. An increase in price will mkae customers less likely to buy the item, therefore a decrease in demand.