The Law of Demand is a fundamental principle in economics stating that, all else being equal, the quantity demanded of a good or service decreases as its price increases, and vice versa. This inverse relationship between price and demand reflects consumer behavior: higher prices discourage purchases, while lower prices attract buyers. The demand curve, typically downward-sloping, illustrates this relationship graphically. Factors influencing demand include consumer income, preferences, substitute and complementary goods, and market expectations. It’s essential to distinguish between a movement along the demand curve (caused by price changes) and a shift in demand (due to non-price factors like income changes).
