The law of supply and demand states that:Group of answer choicesQuantity demanded increases as price decreases and quantity supplied increases as price increasesIn the absence of market frictions, that the market price will adjust so that demand equals supplyIn the absence of market frictions, the market price will adjust so that the elasticity of demand equals the elasticity of supplyThe market will always be in equilibrium

The law of supply and demand primarily states that the quantity demanded increases as price decreases and quantity supplied increases as price increases. This is because consumers tend to buy more of a product when its price is lower, while suppliers are willing to produce more of a product when its price is higher, to maximize their profits.

In addition, in the absence of market frictions, the market price will adjust so that demand equals supply. This is known as market equilibrium. When the quantity demanded by consumers equals the quantity supplied by producers, the market is said to be in equilibrium. At this point, the price at which the product is sold is called the equilibrium price, and the quantity of the product produced and sold is the equilibrium quantity.

The statement that the market price will adjust so that the elasticity of demand equals the elasticity of supply is not accurate. Elasticity of demand and supply are measures of how much quantity demanded or supplied changes in response to a change in price, but they do not necessarily have to be equal for the market to reach equilibrium.

Finally, it's not accurate to say that the market will always be in equilibrium. While markets tend to move towards equilibrium, various factors can cause the market to be in a state of disequilibrium, where supply does not equal demand. These factors can include changes in consumer preferences, technological advancements, changes in income, and government policies.