What is the law of demand quizlet?

The law of demand states that the quantity demanded of a good or service varies inversely with its price, meaning that as the price of a good or service goes up, the quantity demanded will decrease. On the other hand, as the price of a good or service decreases, the quantity demanded will increase. This relationship between price and quantity demanded is represented by the downward sloping demand curve. The law of demand is one of the fundamental principles of economics and is applied in numerous economic models, including supply and demand analysis, market equilibrium, and consumer behavior.