What does the law of demand state?

Question

A. 

When price increases, the quantity demanded by consumers will remain unchanged.

B. 

When price increases, the quantity demanded by consumers will decrease.

C. 

When price decreases, the quantity demanded by consumers will decrease.

D. 

When price decreases, the quantity produced by the producers will decrease.

Answer 1

The demand curve is an inverse relation between price and quantity demanded. Price rises, quantity demanded decreases. The supply curve is a direct relation with price and quantity supplied. Price falls, quantity supplied or produced falls.

A is false. B is true. C is false.

But D is also true, when price decreases, producers produce less.

B and D are true

A and C are false.

Sometimes they make up questions like this, and mark wrong one correct answer in favor of another correct answer. Mistakes in problems, answer keys and grading happens.

But the trick is to look closer at the question. It asks what the law of demand requires. That makes B true. Or at least a far better answer than D.