Law of demand
Understand the Problem
The question is likely asking for an explanation of the law of demand, which is a fundamental concept in economics that describes how the quantity demanded of a good or service varies inversely with its price, assuming other factors remain constant.
Answer
There is an inverse relationship between price and quantity demanded.
The law of demand states that there is an inverse relationship between price and quantity demanded.
Answer for screen readers
The law of demand states that there is an inverse relationship between price and quantity demanded.
More Information
The law of demand is a fundamental principle in economics explaining how consumer purchasing behavior changes with price adjustments.
Tips
Common mistakes include assuming the law of demand applies even when ceteris paribus (all else being equal) does not hold.
Sources
- What Is the Law of Demand in Economics, and How Does It Work? - investopedia.com
- Law of demand - Wikipedia - en.wikipedia.org
- Law of demand (article) | Demand - Khan Academy - khanacademy.org
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