What is the law of demand and how do we illustrate it? The law of demand states that other things remaining the same, the __ the price of a good, the __ A. lower; smaller is the quantity demanded B. higher; greater is the quantity demanded C. higher; smaller is the quantity demanded D. lower; greater is demand A demand curve that illustrates the law of demand __ A. slopes upward to a maximum, and then slopes downward B. slopes downward to a minimum, and then slopes upward C. is vertical D. is downward sloping

The correct answer is:<br /><br />C. higher; smaller is the quantity demanded<br /><br />The law of demand states that, other things remaining the same, the higher the price of a good, the smaller is the quantity demanded. This means that as the price of a good increases, the quantity demanded for that good decreases, and vice versa.<br /><br />A demand curve that illustrates the law of demand is:<br /><br />D. is downward sloping<br /><br />The demand curve is typically downward sloping, indicating that as the price of a good decreases, the quantity demanded increases, and as the price increases, the quantity demanded decreases.