If a consumer’s demand for a good moves in the same direction as the consumer’s income, the consumer’s demand for that good must be inversely related to the price of the good is caller
(A) Law of demand
(B) Law of supply
(C) Law of substitution
(D) Law of optimal choice
Correct Answer : Law of demand
Question Asked : SSC CGL Tier-I Exam 2017
Explanation : The law of demand is a microeconomic law that states, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa. In other words, the law of demand describes an inverse relationship between price and quantity demanded of a good.
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Tags : Microeconomics
