What is the basic law of demand?
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Basic law of demand states that price and quantity demanded are inversely related to each other while keeping all other factors constant. Increase in price lowers the demand for any goods or services.
The law of demand is a fundamental principle of economics that states that at a higher price, consumers will demand a lower quantity of a good. Demand is derived from the law of diminishing marginal utility, the fact that consumers use economic goods to satisfy their most urgent needs first.