The law of demand states that buyers will purchase more of a product as its price drops.

Question

Quizplus · Accepted Answer

The law of demand is one of the fundamental concepts in economics that states that as the price of a product decreases, the quantity demanded of that product increases, ceteris paribus. Conversely, as the price of a product increases, the quantity demanded of that product decreases, ceteris paribus. There can be exceptions to this law, such as with certain luxury goods or products with a strong brand image that consumers are willing to pay a premium for, but in general, the law of demand holds true for most goods and services.

The Law of Demand States That Buyers Will Purchase More