According to the law of demand, what happens when the price of a good decreases?

The law of demand states that, all else being equal, when the price of a good decreases, the quantity demanded for that good increases. This relationship is driven by the principle that consumers are more inclined to purchase a product when it is less expensive, as they perceive a higher value or utility per dollar spent. Consequently, a lower price makes the good more attractive, leading to an increase in the number of units that consumers are willing to buy at that new price point.

This relationship is typically illustrated through a downward-sloping demand curve, where a movement along the curve occurs in response to price changes. Thus, when the price of a good drops, consumers respond by purchasing more, reflecting an increase in quantity demanded. This highlights fundamental consumer behavior in response to price fluctuations, reinforcing why the selected answer is the best choice in understanding the law of demand.