What is the law of demand in economic theory?

The law of demand is a fundamental principle in economics that states that there is an inverse relationship between the price of a good and the quantity demanded by consumers. When the price of a good decreases, it typically becomes more attractive to buyers, leading to an increase in the quantity demanded. This concept illustrates that consumers are generally willing to purchase more of a good when its price is lower, and conversely, they are likely to buy less when the price is higher.

This relationship can be visually represented through a demand curve, which slopes downward from left to right, highlighting that lower prices result in higher quantities demanded. Understanding this law is crucial for analyzing market behavior, consumer choices, and overall economic dynamics.