In economics, demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices over a specific period of time. Demand is fundamentally driven by consumer preferences, income levels, and the prices of related goods, among other factors.
The Law of Demand states that, all else being equal (ceteris paribus), as the price of a good or service decreases, the quantity demanded by consumers increases, and conversely, as the price increases, the quantity demanded decreases. This inverse relationship between price and demand is typically represented by a downward-sloping demand curve on a graph, where the vertical axis represents price and the horizontal axis represents quantity demanded.
In summary, the Law of Demand highlights the negative relationship between price and quantity demanded, demonstrating how consumers' purchasing behavior shifts based on price changes.