The law of demand states that the price and demand have an inverse relationship.
As the price of a product goes up, then fewer people will want to buy the product. For example, Honda sells more cars on average each year than Lexus because more people are able to afford the lower priced Honda. Producers can also use this law to say that as the demand for a product goes up, they will be able to charge more for the product as well.
Answer:
1 B) Price
2 A) Direct
Explanation:
When a goods price is lower, people will buy more of it.
