Answer to Question #194821 in Microeconomics for Amber

Question

Explain the Law of demand and demand curve with relevant examples

Answer 1

The law of demand states that the quantity demanded and the price of a commodity are inversely related, other things remaining constant.

As an example People buy more at lower prices and buy less at higher prices, other things remaining the same.

Consider the law of demand curve below

The demand curve slopes downwards from left to right.

From the demand curve, it is clear that as the price increase quantity demanded decreases and vice versa.