According to the Low of Demond, when prices drop. supply increases quantity demanded is unchanged demand will also drop demond will increase

## Step 1<br />The Law of Demand is a fundamental principle in economics that states that, all else being equal, as the price of a good or service decreases, the quantity demanded of that good or service will increase. This is because consumers are more likely to purchase a good or service when it is cheaper than when it is more expensive.<br /><br />## Step 2<br />In this problem, the price of a good or service is decreasing. According to the Law of Demand, this would lead to an increase in the quantity demanded.<br /><br />## Step 3<br />The other options provided do not align with the Law of Demand. The Law of Demand does not suggest that the supply increases when prices drop, nor does it suggest that the quantity demanded remains unchanged or that demand will also drop.