The Law of Demand

What is the Law of Demand in Economics?

The law of demand states when the price of a commodity is increased, and at the same time other factors are held constant, less of the commodity will be demanded.

This law states that all things being equal, the higher the price the lower the quantity demanded, and the lower the price the higher the quantity demanded.

Law of demand explains consumer choice behavior when the price changes. In the market, assuming other factors affecting demand are constant, when the price of a good rises, it leads to a fall in the demand for that good. This is the natural consumer choice behaviour.