Law of Demand

The Law of Demand states that, all else being equal, as the price of a good or service increases, the quantity demanded by consumers decreases, and as the price decreases, the quantity demanded increases. This inverse relationship occurs because consumers are generally less willing or able to purchase a good or service when its price is high, and more willing to purchase it when its price is low.


In simpler terms, when prices go up, people tend to buy less of the item, and when prices go down, people tend to buy more.


Example: If the price of coffee rises, fewer people may choose to buy it, and if the price drops, more people may decide to purchase it.

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