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Commerce · Q281

Economics

Graduate and Post Graduate · Commerce · question 281

Q281

In a typical demand schedule, quantity demanded

A.
Varies directly with price
B.
Varies proportionately with price
C.
Varies inversely with price
Answer
D.
Is independent of price

Answer: Option C

Solution

Answer: Option C
Solution:
In a typical demand schedule, quantity demanded varies inversely with price. The law of demand states that a higher price typically leads to a lower quantity demanded.