Law of demand

Law of demand,

Definition of Law of demand:

  1. Observation that, as a general rule, the demand for a product varies inversely with its price; lower prices stimulate demand and higher prices dampen it. Law of demand holds in most instances, except in case of Giffen good.

How to use Law of demand in a sentence?

  1. The Chips Ahoy cookies have been on sale recently which makes me think the Law of Demand for them must be getting higher.
  2. One can analyze the process of the exchange of goods and services but if they ignore the law of demand they would be mistaken.
  3. If your business is going well and you cant keep the products on the shelf then the law of demand dictates you raise the price.

Meaning of Law of demand & Law of demand Definition