Explain the law of demand with the help of a diagram.

Demand can be defined as the willingness and ability of a consumer to purchase a good or service.The law of demand states that the quantity demanded of a good or service increases as its price decreases and it decreases as its price increases, ceteris paribus. This implies that the there is a negative relationship between the quantity of good demanded and its price.

DP

Related Economics GCSE answers

All answers ▸

Explain why house prices fell during the 2008 financial crisis.


What are some disadvantages of using GDP as a measure of living standards?


Which one of the following is the most likely consequence of an increase in the division of labour in the production of smartphones?


What is the PPF curve and what would cause it to shift?