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 and/or demand:
“No great idea in its beginning can ever be within the law. How can it be within the law? The law is stationary. The law is fixed. The law is a chariot wheel which binds us all regardless of conditions or place or time.”
—Emma Goldman (1869–1940)
“... a large portion of those who demand woman suffrage are persons who have not been trained to reason, and are chiefly guided by their generous sensibilities.”
—Catherine E. Beecher (1800–1878)