The law of demand states that, ceteris paribus:
AHigher price → higher quantity demanded
BHigher price → lower quantity demandedCORRECT
CPrice has no effect
DDemand always rises
CFAEconomics
AI
Toaster Teacher
Why the answer is B, and why the others tempt you.
Demand curves slope downward — as price rises, quantity demanded falls (all else equal).
Want this in Pidgin, Yoruba, Igbo or Hausa? Sign up free →
Practice more Economics questions
CFA Economics has thousands more questions like this — with Worked answers on every one.