What is the law of demand? Explain the law with the help of a diagram?

A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa.

 

This law summarizes the effect price changes have on consumer behavior. For example, a consumer will purchase more pizzas if the price of pizza falls. The opposite is true if the price of pizza increases.

 

Explanation:

In ordinary language the word demand means desire. But in economics demand means desire backed up by the enough money to pay for the good. Only desire can not be called demand. There is also functional relationship between price and demand. Second point is that demand is always per unit of time.

 

 

LAW OF DEMAND: -”Other things remaining the same when the price of any commodity increases its demand falls and when price falls its demand increases."

According to the law of demand there is inverse relationship between demand and price.

In simple language was can say that when the price of any commodity falls, people are tempted to purchase more commodities. On the other hand when price of any commodity rises people

demand less quantity.