Which of the following is the relation that the law of demand defines?
Last updated Jun 24, 2026
Correct Answer:
Option B —
Price and quantity of a commodity
The Law of Demand states that, keeping all other factors constant (ceteris paribus), there is an inverse (negative) relationship between the price of a commodity and the quantity demanded.
Core Principles:
The Relationship: When the price of a good increases, the quantity demanded decreases. Conversely, when the price decreases, the quantity demanded increases.
The Demand Curve: Because of this inverse relationship, the demand curve always slopes downward from left to right.
Why the other options are incorrect:
A & C: These refer to Income Elasticity of Demand. While income does affect demand, it is not what the "Law of Demand" specifically defines.
D: This refers to the relationship between buyers and sellers, which helps determine Market Equilibrium, rather than the behavior of consumers described by the Law of Demand.
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
