law of demand

In economics, the law of demand states that, all else being equal, as the price of a product increases (↑), quantity demanded falls (↓); likewise, as the price of a product decreases (↓), quantity demanded increases (↑). In simple terms, the law of demand describes an inverse relationship, and an elasticity, between price and quantity of demand. There is a negative relationship between the quantity demanded of a good and its price. The factors held constant in this relationship are the prices of other goods and the consumer's income. There are, however, some possible exceptions to the law of demand (see Giffen goods and Veblen goods).