📈The law of demand establishes an inverse relationship between price and quantity demanded.
💰Consumers prioritize goods differently based on their value and personal preferences.
📉A decrease in price can lead to an increase in the quantity demanded by consumers.
🛒Price increases act as a form of rationing, limiting the purchase of goods to consumers with a strong desire for them.
💡Understanding the law of demand helps businesses and policymakers make informed decisions regarding pricing and market demand.