Question

the law of demand states that:
a. there is a direct relationship between the price of a good and the quantity of the good produced.
b. there is an inverse relationship between the price of a good and the quantity of the good demanded.
c. as the price of a good increases, more units are demanded.
d. there is an increase in the need for a good as the price of the good increases.

Explanation:

The law of demand is a core economic principle that describes the relationship between a good's price and the quantity consumers are willing to buy, assuming all other factors are constant. It holds that as price rises, quantity demanded falls, and vice versa, which is an inverse relationship. Option a refers to supply, not demand. Options c and d incorrectly state a direct relationship between price and quantity demanded/need.

Answer:

b. there is an inverse relationship between the price of a good and the quantity of the good demanded.