Question

question 8 - essay/short answer explain the law of demand. be sure to include a real - world example. your response should be in complete sentences. word limit: 0/150

Explanation:

The law of demand states that, ceteris paribus (all other things being equal), as the price of a good or service increases, the quantity demanded decreases, and vice - versa. For example, when the price of coffee increases at a local café, consumers may buy fewer cups of coffee. They might switch to cheaper alternatives like tea or reduce their overall coffee consumption.

Answer:

The law of demand posits an inverse relationship between price and quantity demanded. In the coffee - buying example, higher coffee prices lead to lower quantity demanded as consumers adjust their behavior.