Which of the given options arranges the following sentences in the most logical sequence to form a meaningful paragraph?
1. It states that, all else being equal, as the price of a good increases, the quantity demanded decreases.
2. Consumers substitute more expensive goods with cheaper alternatives, reducing the quantity demanded at higher prices.
3. This negative relationship between price and demand is due to the substitution and income effects.
4. Additionally, as prices rise, consumers' purchasing power is diminished, leading them to buy less.
5. The law of demand is one of the fundamental principles of economics and is often depicted using a downward-sloping demand curve.

Correct option is A

Option (a) is the correct order of the given sentences.
· 5 gives the broad introduction to the topic—the law of demand—with a standard depiction (downward-sloping curve).
· 1 defines the law precisely (“as price ↑, quantity demanded ↓”). Definition naturally follows the introduction.
· 3 explains why the inverse relation holds—naming the two effects (substitution & income).
· 2 elaborates the substitution effect: buyers switch to cheaper alternatives when prices rise.
· 4 then elaborates the income effect: higher prices erode purchasing power, so consumers buy less.