What law of demand?

[Achilles]

Can someone explain what law of demand means in economics? I want to understand how price and demand are related and why demand usually decreases when the price increases. A simple explanation with an example would be helpful.

 

[robert]

The Law of Demand of Economics has it that when the price of a commodity rises, the quantity demanded by the consumers would tend to reduce and vice versa; that is, all other aspects held constant. This is an inverse relationship that can be used to explain consumer behavior on markets. The Law of Demand is applied by businesses and economists to forecast the buying behavior, determine pricing policies and how shifts in price will affect the customer buying decisions.

 

[dominic]

The Law of Demand states that as the price of a good increases, the quantity demanded decreases, and vice versa. This is because higher prices make the good less attractive to consumers, leading to a decrease in demand. The inverse relationship between price and quantity demanded is a fundamental concept in economics.

 

[vanka]

The law of demand states that, all else equal, as the price of a good or service increases, the quantity demanded decreases, and as the price decreases, the quantity demanded increases. It explains consumer behavior and is usually illustrated by a downward-sloping demand curve in economics.