In microeconomics , the law of demand is a fundamental principle which states that there is an inverse relationship between price and quantity demanded. In other words, "conditional on all else being equal , as the price of a good increases (↑) , quantity demanded will decrease (↓) ; conversely, as the price of a good decreases (↓) , quantity demanded will increase (↑) ". [1] Alfred Marshall worded this as: "When then we say that a person's demand for anything increases, we mean that he will buy more of it than he would before at the same price, and that he will buy as much of it as before at a higher price". [2] The law of demand, however, only makes a qualitative statement in the sense that it describes the direction of change in the amount of quantity demanded but not the magnitude of change. The demand curve, shown in blue, is sloping downwards from left to right because price and quantity demanded are inversely related. This rela
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