Economics Supply And Demand Questions
The law of demand states that there is an inverse relationship between the price of a good or service and the quantity demanded, ceteris paribus (all other factors remaining constant). In other words, as the price of a good or service increases, the quantity demanded decreases, and vice versa. This relationship is based on the assumption that consumers have a limited budget and will seek to maximize their utility or satisfaction by purchasing more of a good or service when its price is lower.