Quick Definition

The Law of Demand states that, all else being equal, as the price of a product decreases, the quantity demanded increases, and vice versa.

Examples

• 1As the price of smartphones decreases, more people are likely to purchase them, increasing the demand.
• 2During a sale, the lower prices of clothing lead to higher sales volumes as more consumers are willing to buy.
• 3When gasoline prices rise, consumers often reduce their usage, leading to a decrease in quantity demanded.

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