Demand Law
Demand Law refers to the economic principle that describes how the quantity of a product or service that consumers are willing to purchase changes in response to its price. Generally, as the price of an item decreases, the demand for it increases, and vice versa. This relationship is often illustrated through a demand curve on a graph, where the x-axis represents quantity and the y-axis represents price.
Factors such as consumer preferences, income levels, and the availability of substitutes can also influence demand. For example, if a new smartphone model is released, it may increase the demand for that specific model while decreasing demand for older versions. Understanding Demand Law helps businesses and policymakers make informed decisions about pricing and production.