The law of demand states that an increase in the price of a good decreases the demand for that good.

Question

Quizplus · Accepted Answer

This is the basic principle of the law of demand. When the price of a good increases, consumers are less willing and able to purchase it, causing the demand for that good to decrease. Conversely, when the price of a good decreases, consumers are more willing and able to purchase it, causing the demand to increase.

The Law of Demand States That an Increase in the Price