The law of demand applies most directly to which group?

• A. Sellers
• B. Lawmakers
• C. Producers
• D. Buyers

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the law of demand, which states that, all else equal, as the price of a good decreases, the quantity demanded by buyers increases, and vice versa.
2. Step 2: Identify the groups involved in a market: sellers (producers), buyers (consumers), and lawmakers (regulators).
3. Step 3: Recognize that the law of demand describes the behavior of buyers in response to price changes, not sellers or lawmakers.
4. Step 4: Conclude that the law of demand applies most directly to buyers because it explains how their purchasing decisions change with price.
5. Step 5: Therefore, the correct group to which the law of demand applies most directly is buyers.