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:
“I consider, then, the power to annul a law of the United States, assumed by one state, incompatible with the existence of the Union, contradicted expressly by the letter of the Constitution, unauthorized by its spirit, inconsistent with every principle on which it was founded, and destructive of the great object for which it was formed.”
—Andrew Jackson (1767–1845)
“You can’t stand up against me. You haven’t got the strength. You’ll do as I say. I demand that you give up this man. I demand that you send him away.”
—Muriel Box (b. 1905)