The correct answer is D. All of the above.
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.
In other words, there is an inverse relationship between price and quantity demanded. This means that as price increases, quantity demanded decreases, and vice versa.
The law of demand is a fundamental economic principle that has been observed in many different markets. It is a useful tool for understanding how consumers behave and for making predictions about how changes in price will affect demand.
Here is a brief explanation of each option:
- Option A: Price of commodity is an independent variable. This means that the price of a good is determined by factors other than the quantity demanded, such as the cost of production, the availability of substitutes, and consumer preferences.
- Option B: Quantity demanded is a dependent variable. This means that the quantity demanded of a good is determined by the price of the good, as well as other factors such as the cost of production, the availability of substitutes, and consumer preferences.
- Option C: Reciprocal relationship is found between price and quantity demanded. This means that there is an inverse relationship between price and quantity demanded, as explained above.
I hope this explanation is helpful. Please let me know if you have any other questions.