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Which statement best explains the law of demand?

The quantity demanded by consumers increases as prices rise, then decreases as prices fall.
The quantity demanded by consumers decreases as prices rise, then increases as prices fall.
The quantity demanded by producers increases as prices rise, then decreases as prices fall.
The quantity demanded by producers decreases as prices rise, then increases as prices fall.

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Answered by GPT-5 mini AI
The second statement. The law of demand says the quantity demanded by consumers falls when price rises and rises when price falls (an inverse relationship).