Law of Demand

Watch this video about the law of demand for understanding consumer behavior. The basic premise of the law of demand, as the video explains, is that if a consumer sees the price of product rising then this consumer will be less likely to buy that product or will lower the amount of consumption of that product. Think about the rise of gasoline prices and the effect it has on the average consumer as most consumers will try to reduce their gasoline consumption, assuming that one's income and wealth remains the same.

Source: Khan Academy
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Last modified: Thursday, February 25, 2021, 10:50 AM