Which statement best explains the law of demand? A. The quantity demanded by consumers increases as prices rise, then decreases as prices fall.
B. The quantity demanded by consumers decreases as prices rise, then increases as prices fall.
C. The quantity demanded by producers increases as prices rise, then decreases as prices fall.
D. The quantity demanded by producers decreases as prices rise, then increases as prices fall.
The correct answer is B. The quantity demanded by consumers decreases as prices rise, then increases as prices fall.
Explanation: The law of demand states that, all other factors being equal, when the price of a product increases, the quantity demanded decreases, and conversely, when the price decreases, the quantity demanded increases. This inverse relationship reflects consumer behavior in response to price changes. If you have more questions or need further clarification, feel free to ask!