Law of Demand

State the law of demand. Describe it with example and diagram?

          The law of demand states that, all else being equal, as the price of a good or service increases, the quantity demanded for that good or service decreases, and vice versa.

For example, let's consider the market for smartphones. If the price of smartphones increases, consumers are less willing or able to buy them, leading to a decrease in the quantity demanded. Conversely, if the price of smartphones decreases, consumers are more willing or able to buy them, leading to an increase in the quantity demanded.

Here's a simple diagram illustrating the law of demand:

perl
Copy code
       |
       |     Demand
       |    /
       |   /
       |  /
       | /
       |/
Price  |-----------------
       |         Quantity
       |
In this diagram, as the price decreases (moving left along the horizontal axis), the quantity demanded increases (moving down along the vertical axis), illustrating the inverse relationship described by the law of demand.

Author: Birendra Kumar Shah
Affiliation: Gauriganj Secondary School
Gauriganj, Jhapa