Law Of Demand

A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer demand for the good or service will decrease and vice versa.

Law Of Demand

This law summarizes the effect price changes have on consumer behavior. For example, a consumer will purchase more pizzas if the price of pizza falls. The opposite is true if the price of pizza increases.

Investment dictionary. . 2012.

Look at other dictionaries:

  • law of demand — Demand exhibits a direct relationship to price. If all other factors remain constant, an increase in demand leads to an increased price, while a decrease in demand leads to a decreased price. The CENTER ONLINE Futures Glossary …   Financial and business terms

  • law of demand — a statement in economics: the quantity of an economic good purchased will vary inversely with its price compare inferior good …   Useful english dictionary

  • the law of demand — ► ECONOMICS an economic law that states that people buy less of a product when the price is high, and more when the price is low: »This is the normal law of demand, in which the quantity of corn demanded increases as the price of corn declines.… …   Financial and business terms

  • demand — de·mand 1 n 1: a formal request or call for something (as payment for a debt) esp. based on a right or made with force a shareholder must first make a demand on the corporation s board of directors to act R. C. Clark a written demand for payment… …   Law dictionary

  • demand note — see note Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. demand note A note or instrument that is pay …   Law dictionary

  • demand guarantee — International A guarantee that imposes a primary obligation on the issuer to pay the beneficiary on its first demand for payment, where the primary obligor fails to perform the contract. The issuer s obligations are not affected by disputes over… …   Law dictionary

  • demand letter — Correspondence from one party to a dispute to the other, stating the drafting party s version of the facts of the dispute and making a claim for compensation or other action to resolve it. Often drafted by an attorney, a demand letter is… …   Law dictionary

  • demand deposit — see deposit 2a Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • demand loan — see loan Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • demand a payment — index assess (tax) Burton s Legal Thesaurus. William C. Burton. 2006 …   Law dictionary

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