An inverse relationship between price and quantity demanded implies that

Assessment: JAMB UTME - Economics - 2005 Subject: Economics

Question 1 Report

An inverse relationship between price and quantity demanded implies that
Answer Details
An inverse relationship between price and quantity demanded means that the two variables change in opposite directions. When the price of a good or service increases, the quantity demanded of it tends to decrease, and when the price decreases, the quantity demanded tends to increase. This is the law of demand, which states that there is an inverse relationship between the price of a good or service and the quantity demanded of it, all other factors being equal. Therefore, when the price of a good or service changes, it affects the behavior of consumers and their demand for it.
Read lesson note on The Theory Of Demand (JAMB)
Read lesson note on Economics As A Science (JAMB)
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