According to the law of demand, what happens when the price of a good rises?

Basic of Economics MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
Basic of Economicseconomics-mcqs › basic-of-economics
Published
26 May 2019
Last updated
28 May 2026

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Explanation

The law of demand states that when the price of a product increases, the quantity demanded typically decreases (Option A). Conversely, if the price decreases, demand usually increases. Options B and C incorrectly describe these relationships, while Option D is not applicable.

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