[This is part of the series: The Complete Guide To Economics 101.]
What is the law of demand?
The Law Of Demand says that all else equal, the quantity demanded of a good, or service, will decrease when the price of that good or service increases.
Conversely, the quantity demanded of a good, or service, will increase when the price of that good or service decreases.
- If the price of Coke decreases, on average, people will buy more Coke.
- If the price of T-shirts increases, on average people will buy fewer T-shirts.
- If the price of computers decreases, on average, people will buy more computers.
- And if the price of steak falls, on average, people will eat more steak.