What does the law of demand state?

The law of demand states that, all else being equal, as the price of a good or service decreases, the quantity demanded by consumers increases. This relationship reflects consumer behavior; when prices are lower, more consumers are willing and able to purchase the good, leading to an increase in quantity demanded. Conversely, when prices rise, the opposite occurs—fewer consumers are inclined to buy the product, resulting in a decrease in the quantity demanded. This fundamental principle is a key aspect of economic theory and underlies the downward-sloping nature of the demand curve in market analysis. Therefore, the choice that indicates that as prices decrease, demand increases accurately captures this principle.