What is the law of demand primarily concerned with?

The law of demand focuses on the relationship between the price of a good or service and the quantity that consumers are willing to purchase. Specifically, it states that there is an inverse relationship; as the price of a good falls, the quantity demanded typically increases, and conversely, as the price rises, the quantity demanded generally decreases. This principle reflects consumer behavior and how it reacts to changes in price, highlighting that lower prices tend to encourage more consumers to buy a product, while higher prices tend to discourage purchasing.

In contrast, the other options address different economic concepts. The first option pertains to the relationship between price and quantity supplied, which is part of the law of supply rather than demand. The second option discusses consumer preferences and their impact on production, which relates more to market dynamics and firms’ decisions rather than demand itself. The final option concerns how a change in income affects demand, which is an important factor but not the primary focus of the law of demand, which centers specifically on the price-quantity relationship.