Economics Elasticity Of Supply Questions Medium
The relationship between price and quantity demanded is known as the law of demand. According to this law, there is an inverse relationship between price and quantity demanded. As the price of a good or service increases, the quantity demanded by consumers decreases, and vice versa. This relationship is based on the assumption that all other factors influencing demand, such as income, preferences, and prices of related goods, remain constant. The law of demand is a fundamental concept in economics and is crucial in understanding how changes in price affect consumer behavior and market dynamics.