What is the law of demand?
The law of demand is a fundamental concept of economics that describes the inverse relationship between price and quantity demanded. This law states that when the price of a good or service increases, the quantity demanded decreases, and vice versa, when the price decreases, the quantity demanded increases. The law of demand is a fundamental part of the free market economy and is used to help businesses and governments predict how people will react to changes in prices. It is also a critical tool for businesses to determine the optimal price for their products or services.
This mind map was published on 17 May 2023 and has been viewed 97 times.
