What is the law of demand?

The law of demand describes the inverse relationship between price and quantity demanded. Specifically, it states that as the price of a good or service decreases, the quantity demanded by consumers tends to increase, and conversely, as the price increases, the quantity demanded usually falls. This principle reflects consumer behavior and preferences, where lower prices make goods more accessible, thus encouraging greater consumption. It is a fundamental concept in economics that helps to explain market dynamics, influencing how prices are determined through interactions between buyers and sellers.

The other options relate to different economic concepts. One option focuses on the relationship between price and quantity supplied, which is related to the law of supply. Another option suggests that more is demanded at higher prices, which contradicts the law of demand. Lastly, the notion of constant demand regardless of price change implies a perfectly inelastic demand, which is not typically reflective of consumer behavior in most markets.