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The relationship between price of a commodity and the demand for it
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- is a positive relationship
- is an inverse relationship
- They are independent of each other
- They do not have any relationship
- is a positive relationship
Correct Option: B
According to the Law of demand, consumers buy more of a good when its price is lower and less when its price is higher. It states that the quantity demanded and the prices of a commodity are inversely related, other things remaining constant.
