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Quantity demanded describes the total amount of goods or services that consumers demand at any given point in time.

The price of goods and services in a marketplace will determine their quantity demanded. According to the law of demand, the higher a goodâ€™s price, the lower the quantity demanded.

On a chart, the demand curve has a downward slope. Higher prices create smaller demand. As prices for a good decrease, its quantity demanded will increase. If the price of pizza fell from \$10 to \$6 a pie, the quantity of pizza demanded would increase.

When a given quantity of a good or service is demanded, as determined by its price, it will then impact the amount of goods or services that will be purchased. The degree to which the quantity demanded changes with respect to price is called elasticity of demand.

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