The law of demand
The law of demand states that as the price of a good or service decreases, the quantity demanded by consumers increases, and conversely, as the price increases, the quantity demanded decreases. This relationship occurs because lower prices make goods more accessible to buyers, while higher prices may lead them to seek alternatives or forgo the purchase altogether. Essentially, demand reflects consumers' willingness to buy at various price levels, illustrating how price changes influence their purchasing decisions. This principle is fundamental in understanding market behavior and consumer choices.
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The Law of Demand states that, all else being equal, as the price of a good or service decreases, the quantity demanded by consumers tends to increase, and vice versa. In simpler terms, when something costs less, people are more likely to buy it, and when it costs more, they tend to buy less. This relationship reflects consumer behavior and helps explain how pricing impacts market demand for products. It is fundamental in economics, influencing how businesses set prices and how consumers make purchasing decisions.