The correct answer is: B. There is always an inverse relationship between price and demand.
The law of demand states that, all other things being equal, the higher the price of a good, the less people will demand that good. Conversely, the lower the price of a good, the more people will demand that good.
This is because people have limited budgets and they will always try to get the most value for their money. If a good is expensive, people will only buy a small amount of it. If the good is cheap, people will buy more of it.
There are a few exceptions to the law of demand. For example, if a good is a luxury good, people may still buy it even if the price is high. This is because luxury goods are seen as status symbols and people are willing to pay a lot of money for them.
Another exception is if a good is a necessity, people will still buy it even if the price is high. This is because they need the good to survive and they cannot do without it.
Overall, the law of demand is a very important concept in economics. It helps us to understand how people make decisions about what to buy. It also helps us to predict how changes in price will affect demand.
Here is a brief explanation of each option:
- Option A: There is always a direct relationship between the price and demand. This is not true. The law of demand states that there is an inverse relationship between price and demand.
- Option B: There is always an inverse relationship between price and demand. This is the correct answer. The law of demand states that, all other things being equal, the higher the price of a good, the less people will demand that good. Conversely, the lower the price of a good, the more people will demand that good.
- Option C: There is always a direct relationship between desire and demand. This is not true. Desire is not the same as demand. Desire is a feeling of wanting something, while demand is the willingness and ability to pay for something.
- Option D: There is no relationship between price and demand. This is not true. The law of demand states that there is an inverse relationship between price and demand.