The Law of Demand States That

Multiple Choice

The law of demand states that

A) consumers will exhaust their incomes as they purchase goods and services at given absolute prices.
B) the quantity demanded of a good is higher at a lower relative price than at a higher relative price.
C) there is a direct positive relationship between relative price and quantity demanded.
D) if the price of a good increases both relatively and absolutely, there will be no change in quantity demanded.