In economics, the law of demand is an economic law, which states that consumers buy more of a good when its price is lower and less when its price is higher (ceteris paribus).
When the price of a product is increased then less will be demanded. Also is the same for the opposite, when the price of a product is decreased then more will be demanded.
The Law of demand states that the quantity demanded and the price of a commodity are inversely related, other things remaining constant. That is, if the income of the consumer, prices of the related goods, and preferences of the consumer remain unchanged, then the change in quantity of good demanded by the consumer will be negatively correlated to the change in the price of the good. There are some exceptions to this rule, however. see giffen goods and veblen goods.
Read more about Law Of Demand: Mathematical Expression, Assumptions, Exceptions To The Law of Demand, Law of Demand and Changes in Demand, Limitation
Famous quotes containing the words law of, law and/or demand:
“The law of humanity ought to be composed of the past, the present, and the future, that we bear within us; whoever possesses but one of these terms, has but a fragment of the law of the moral world.”
—Edgar Quinet (1803–1875)
“To be a Negro is to participate in a culture of poverty and fear that goes far deeper than any law for or against discrimination.... After the racist statutes are all struck down, after legal equality has been achieved in the schools and in the courts, there remains the profound institutionalized and abiding wrong that white America has worked on the Negro for so long.”
—Michael Harrington (1928–1989)
“Again and again I am brought up against it, and again and again I resist it: I don’t want to believe it, even though it is almost palpable: the vast majority lack an intellectual conscience; indeed, it often seems to me that to demand such a thing is to be in the most populous cities as solitary as in the desert.”
—Friedrich Nietzsche (1844–1900)