The law of demand defines the relationship between which two variables?

The Law of Demand states that, all other factors being equal (ceteris paribus), as the price of a good or service increases, the quantity demanded for that good or service decreases, and vice versa. This establishes an inverse relationship between price and quantity demanded.

• (a) Income and Price of Commodity: While income is a determinant of demand, the law of demand specifically focuses on the relationship between the price of a commodity and its quantity demanded, assuming income is constant.
• (b) Price and quantity of the commodity: This option directly describes the relationship defined by the law of demand.

Therefore, the law of demand defines the relationship between the price and the quantity of a commodity.

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