The Law of Demand is one of the most basic and important ideas in economics. It simply explains how people react when the price of a product changes. In everyday life, we see that when prices rise, we usually buy less, and when prices fall, we buy more. This natural behavior is what forms the Law of Demand. Understanding this concept helps us know how markets work, how consumers make decisions, and how businesses set prices. To make learning easier, we have created a set of simple and clear MCQs that will help you understand the Law of Demand in a quick way.

[Image of a downward sloping demand curve showing price and quantity demanded]