What is the law of demand?
Understand the Problem
The question is asking for the definition of the law of demand, which is a fundamental concept in economics that describes the inverse relationship between the price of a good or service and the quantity demanded for it.
Answer
The law of demand describes an inverse relationship between price and quantity demanded.
The law of demand states that as the price of a good or service increases, the quantity demanded decreases, and vice versa. It describes an inverse relationship between price and quantity demanded.
Answer for screen readers
The law of demand states that as the price of a good or service increases, the quantity demanded decreases, and vice versa. It describes an inverse relationship between price and quantity demanded.
More Information
The law of demand is a fundamental concept in economics that explains how prices affect the quantity of goods or services that consumers are willing to buy.
Tips
A common mistake is to confuse demand with quantity demanded. Demand refers to the entire demand curve, while quantity demanded refers to a specific point on the curve.
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 - Definition, Graph, Uses, Exceptions - corporatefinanceinstitute.com
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