In the context of demand theory, the law of demand states that, ceteris paribus:
A. Price and quantity demanded are inversely related
B. Price and quantity demanded are positively related
C. Price and supply are inversely related
D. Income and quantity demanded are inversely related
Answer: Option A
Solution (By JKSSB Mock Tests)
The law of demand states that, other things remaining constant, the quantity demanded of a commodity falls when its price rises and rises when its price falls, indicating an inverse relationship between price and quantity demanded.
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