Which of the following statements about the law of demand is accurate?
1
It states that, ceteris paribus, as the price of a good increases, the quantity demanded also increases.
2
It explains that an increase in consumer income will always lead to an increase in the demand for all types of goods.
3
It is applicable only to luxury goods and not to necessities.
4
It implies that there is an inverse relationship between the price of a good and the quantity demanded.
5
It does not consider the substitution effect and the income effect.