Question

Question Which of the following states the law of supply and demand? (1 point) Responses All things being equal, the higher the price of a good or service, the lower the demand will be for that good or service All things being equal, the higher the price of a good or service, the lower the demand will be for that good or service All things being equal, the lower the price of a good or service, the lower the demand will be for that good or service. All things being equal, the lower the price of a good or service, the lower the demand will be for that good or service. All things being equal, a provider will be willing to supply more goods or services for a lower price if a lower quantity is sold. All things being equal, a provider will be willing to supply more goods or services for a lower price if a lower quantity is sold. All things being equal, a provider will be willing to supply fewer goods or services for a lower price if a lower quantity is sold.

Answer 1

The statement that best captures the law of supply and demand is:

"All things being equal, the higher the price of a good or service, the lower the demand will be for that good or service."

This reflects the inverse relationship between price and demand, which is a key principle of the law of demand. Additionally, the law of supply states that all things being equal, the higher the price, the more of a good or service suppliers will be willing to produce and offer for sale. However, the correct answer focuses on demand specifically.