Law Of Demand

What does it Mean? 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. 

 
Investopedia Says... 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.

Terms Related Links

Demand
Economics
Equilibrium
Macroeconomics
Marginalism
Microeconomics
Supply

Terms Related Links
Economics Basics - Learn economics principles such as the relationship of supply and demand, elasticity, utility, and more!

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Understanding Supply-Side Economics - Does the amount of goods and services produced set the pace for economic growth? Here are the arguments.

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