Demand: Its Defnition and Its Law
Demand is the relationship between various hypothetical market prices for a good or service, and the total number of units that consumers want to purchase at each hypothetical price.
The Law of Demand says that holding other infuences constant, a lower price will lead a consumer to buy either the same or a greater amount of the good or service.
The Law of Demand: Its Proof
Economists prove the Law of Demand is true by thinking through the logic of economizing action. As a consumer buys more units of a good, each successive unit is less important, and so it is only natural that a consumer who spends his or her money in order to satisfy the most important goals, will necessarily buy at least the same number of units as a good's price falls.
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