According to the law of demand, when the price rises, the quantity demanded tends to

• A. Increase
• B. Decrease
• C. Remain constant
• D. Increase then decrease

Answer: (B)

The central idea is that price and quantity demanded move in opposite directions when all else is held equal. When the price rises, people buy less of the good, so quantity demanded falls. This happens through the substitution effect (more expensive relative to substitutes, so consumers switch away) and the income effect (higher prices reduce purchasing power, so overall purchases drop). Therefore, a decrease in quantity demanded in response to a price rise is the typical outcome. The other options don’t fit because a higher price doesn’t usually induce more buying, keep quantity unchanged, or produce a rise followed by a fall without a specific changing context. (Note: there are rare exceptions like Giffen or Veblen goods, but they aren’t the normal case.)