According to the law of demand, what happens when price rises?

The law of demand states that, all else being equal, as the price of a good or service rises, the quantity demanded by consumers tends to fall. This relationship is illustrated by the downward-sloping demand curve, where higher prices generally lead to a decrease in the quantity that consumers are willing and able to purchase.

When prices increase, consumers may search for substitutes, reduce consumption, or decide not to buy the product at all, leading to a decrease in the quantity demanded. Therefore, the correct response reflects this fundamental principle in economics, confirming that price increases typically result in a lower quantity demanded.

The other options do not accurately align with the law of demand. An increase in quantity demanded would suggest that consumers buy more as prices rise, which contradicts the basic premise. Notions of supply exceeding demand typically relate to price adjustments in a market equilibrium context, while production levels remaining constant does not directly tie into the demand relationship concerning price changes.