If a firm lowered the price of its product, the "law of diminishing demand" says that the quantity demanded would decrease.

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The law of demand says that as the price of a good decreases, the quantity demanded will increase, all other things being equal. The law of diminishing marginal utility states that as a person consumes more of a good or service, the additional satisfaction from each unit of it decreases. However, this does not necessarily lead to a decrease in quantity demanded if the price of the good is lowered.

If a Firm Lowered the Price of Its Product, the "Law