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Select all the correct answers. Which statements are true according to the law of demand?

1. An increase in supply leads to an increase in demand.

2. A decrease in supply leads to a decrease in demand.

3. An increase in price leads to a decrease in quantity demanded.

4. A decrease in price leads to an increase in quantity demanded.

5. An increase in price leads to an increase in demand.

Respuesta :

shiw

The correct statements are:

  1. An increase in price leads to a decrease in quantity demanded.
  2. A decrease in price leads to an increase in quantity demanded.

Explanation:

According to Law of supply & demand:

  • There is an inverse relationship between the price & quantity demanded.
  • There is an direct relationship between the price & quantity supplied.
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