What does the Law of Demand describe?

The Law of Demand describes the inverse relationship between a good's price and the quantity demanded by consumers. Specifically, it states that as the price of a good decreases, the quantity demanded increases, and conversely, as the price increases, the quantity demanded decreases. This principle reflects consumer behavior: when a product is cheaper, more people are inclined to purchase it, while higher prices tend to drive consumers away.

This foundational concept helps explain why demand curves slope downward from left to right. For instance, if a product is priced lower, more consumers can afford it or are willing to buy more of it; thus, the quantity demanded rises. This relationship assumes that all other factors remain constant and is central to understanding consumer market behavior and demand-side economics.