law of demand
Economics' inverse rule
The law of demand is the economic principle that, all else being equal, as the price of a good rises, the quantity demanded falls—and vice versa.
This inverse relationship between price and demand forms the foundation of supply-and-demand analysis: The law of demand explains why sales spike when prices drop.
- supplyFurnish or stock
- priceMonetary value assigned
- price dropReduction in cost
- price pointSet retail cost level
- quantityMeasurable amount present
scarcity · elasticity · equilibrium · market · market forces · consumer · buyer · economics · downward · inverse · substitution · affordability · purchasing · buying power · willingness · shortage · surplus · trade-off
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