When the price of a product rises above 50, what typically happens to the total quantity demanded according to the law of demand?

• A. The total quantity demanded decreases.
• B. The total quantity demanded remains unchanged.
• C. The total quantity demanded increases.
• D. The total quantity demanded becomes infinite.

Answer: (A)

Verified step by step guidance

1. Recall the law of demand, which states that, ceteris paribus (all else equal), when the price of a product increases, the quantity demanded of that product typically decreases.
2. Understand that the law of demand reflects the inverse relationship between price and quantity demanded, meaning consumers buy less of a good as it becomes more expensive.
3. Apply this principle to the given scenario: when the price rises above 50, we expect the quantity demanded to decrease because higher prices discourage consumption.
4. Recognize that the other options (quantity demanded remains unchanged, increases, or becomes infinite) contradict the fundamental law of demand and typical consumer behavior.
5. Conclude that the correct interpretation is that the total quantity demanded decreases when the price rises above 50.