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 ?
When contemplating entering a new market, to that particular supplier, or a company is introducing a new product into their existing market, in either case, it will be necessary to understand this performance segmentation demand first and then apply the law of demand in setting its' entrance pricing strategy.
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.
Rick Kash, CEO and founding partner of The Cambridge Group, demonstrates how businesses now must focus on the demand side first if they wish to thrive in the new demand-driven economy in his book The New Law of Demand and Supply: The revolutionary new demand strategy for faster growth and higher profits.
PLANS revealed today to widen the M6 in Cheshire prove we haven't learnt a thing about the law of demand in transport.