Law of Demand


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Related to Law of Demand: Demand curve, Law of supply

Law of Demand

In microeconomics, the idea that demand falls as prices rise and vice versa. For example, if prices for widgets rise, fewer people will buy widgets. See also: Supply and demand.
References in periodicals archive ?
Both find that in the real world, the law of demand still applies to labor.
The law of demand simply means that buyers usually purchase more units of goods at a low price than at a high price.
The remaining papers are presented under the heading, "Dynamics of the Economic Mechanism," and include discussion of the theory of competitive price, inductive evidence on marginal productivity, business acceleration and the law of demand, productive capacity and effective demand, aggregate spending by public works, and Wesley C.
In the field of economics a wide literature exists having undertaken the law of demand in view of numerous approaches: historical, psychological, intuitive or profoundly formal (Teira 2006), (Beattie & LaFrance 2006), (Zhang, 2005); many times our students do not have access to such articles or they regard them as being too difficult compared to their own purposes and background.
However, assuming away the law of demand hardly qualifies as economic research.