Law Of Demand

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Dictionary Says

Definition of 'Law Of Demand'

A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa. 

Law Of Demand
 
Investopedia Says

Investopedia explains 'Law Of Demand'

This law summarizes the effect price changes have on consumer behavior. For example, a consumer will purchase more pizzas if the price of pizza falls. The opposite is true if the price of pizza increases.

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