Law of Demand

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:

    Nor has science sufficient humanity, so long as the naturalist overlooks the wonderful congruity which subsists between man and the world; of which he is lord, not because he is the most subtile inhabitant, but because he is its head and heart, and finds something of himself in every great and small thing, in every mountain stratum, in every new law of color, fact of astronomy, or atmospheric influence which observation or analysis lay open.
    Ralph Waldo Emerson (1803–1882)

    Unless we maintain correctional institutions of such character that they create respect for law and government instead of breeding resentment and a desire for revenge, we are meeting lawlessness with stupidity and making a travesty of justice.
    Mary B. Harris (1874–1957)

    Just as the performance of the vilest and most wicked deeds requires spirit and talent, so even the greatest demand a certain insensitivity which under other circumstances we would call stupidity.
    —G.C. (Georg Christoph)