According to the Law of Demand, what happens to quantity demanded as price increases?

The Law of Demand states that there is an inverse relationship between price and quantity demanded. This means that as the price of a good or service increases, the quantity demanded by consumers decreases. This occurs because higher prices typically make a product less affordable for many consumers, leading them to either buy less of that particular good or seek substitutes that are less expensive.

For example, if the price of a popular snack rises, consumers might decide to buy fewer units of that snack or switch to a different snack that is more affordable. This behavior reflects the basic principles of consumer choice and resource allocation in the marketplace.

In this scenario, the correct answer emphasizes how an increase in price leads to a reduction in the quantity demanded, which aligns perfectly with the fundamental concept of the Law of Demand. This relationship is crucial for understanding market dynamics and consumer behavior in economic studies.