Correct option is B
The correct answer is: (B) Negative correlation
Explanation
The relationship between demand and price is generally a negative correlation, which means that as the price of a good increases, the quantity demanded decreases, and vice versa.
The relationship between demand and price is generally a negative correlation, which means that as the price of a good increases, the quantity demanded decreases, and vice versa.
This principle is known as the Law of Demand, a fundamental concept in economics that reflects consumer behavior.
Information Key Points
Law of Demand: Price ↑ → Demand ↓ and Price ↓ → Demand ↑
This inverse relationship is observed in normal market conditions.
Based on consumer purchasing power and substitution effect.
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