what is law of demands
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Law of demand
In microeconomics, the law of demand is a fundamental principle which states that, "conditional on all else being equal, as the price of a good increases, quantity demanded will decrease; conversely, as the price of a good decreases, quantity demanded will increase".
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In microeconomics, the law of demand is a fundamental principle which states that, "conditional on all else being equal, as the price of a good increases (↑), quantity demanded will decrease (↓); conversely, as the price of a good decreases (↓), quantity demanded will increase (↑)".[1] The only factor which influences the quantity demanded is the price. The law of demand is the inverse relationship between demand and price. [2] It also “works with the law of supply to explain how market economies allocate resources and determine the prices of goods and services that we observe in everyday transactions” [3] The law of demand describes an inverse relationship between price and quantity demanded of a good. Alternatively, other things being constant, quantity demanded of a commodity is inversely related to the price of the commodity. For example, a consumer may demand 2 kgs of apples at $70 per kg; he may, however, demand 1 kg if the price rises to $80 per kg. This has been the general human behaviour on relationship between the price of the commodity and the quantity demanded. The factors held constant refer to other determinants of demand, such as the prices of other goods and the consumer's income.[4] There are, however, some possible exceptions to the law of demand, such as Giffen goods and Veblen goods.
HERE IS ATTACHMENT IN ABOVE PIC..
A demand curve, shown in red and shifting to the right, demonstrating the inverse relationship between price and quantity demanded (the curve slopes downwards from left to right; higher prices diminish the quantity demanded). :::::> This is not true, as shown on the graph where a higher price (P1 -> P2) results in a greater quantity demanded (Q1 -> Q2). A shift of the demand curve does not result from a change in price; it results from a change in demand. What should be shown is movement ALONG the demand curve (D1) to a higher price point, which will result in a smaller quantity demanded.
