What is the law of demand? When prices rise demand rises When prices rise demand falls When prices fall , supply falls When prices rise , supply falls

The law of demand is a fundamental principle in economics that states that, all else being equal, as the price of a good or service increases, the quantity demanded of that good or service decreases. Conversely, as the price decreases, the quantity demanded increases. This relationship between price and quantity demanded is typically represented graphically with a downward-sloping demand curve.<br /><br />In the given options, the correct statement that reflects the law of demand is:<br /><br />**When prices rise, demand falls.**<br /><br />This means that as the price of a good or service increases, consumers are generally willing to purchase less of it, and vice versa.