Answer to Question #243172 in Microeconomics for Gabba

Question

What is the law of demand

Answer 1

Solution:

The law of demand is an economic fundamental principle that states that all other things being constant, a price increase of a particular good will lead to a decrease in quantity demanded for that good, while a decrease in the price of a product will lead to an increase in the quantity demanded for that product.

According to the law of demand, there is an inverse relationship between the price of a product and the quantity demanded.