Defining the law of Demand
Via Scoop.it – Teaching Economics
This is a fundamental rule of economics that should make common sense to most people. It basically states that as the price of something goes down, people will be willing to purchase more of it. Of course, economics in theory is much easier than economics in reality, but lets consider some examples. First think of the whole market for cars. There are some people who would like to buy a car now, but are unable too because they are just a little too expensive. By decreasing the price, these people are now able to afford cars, and therefore buy them. So everything else equal (ceteris paribus) as the price goes down, more of the goods (cars) are going to be sold.