One of the most fundamental ideas in economics is the law of demand. It explains how market economies distribute resources price of goods will not change.
According to the law of demand, the quantity bought varies inversely with price. In other words, the quantity demanded decreases as the price increases. Because of declining marginal utility, this happens. In other words, consumers utilize the initial units of an economic good they buy to fulfill their most pressing requirements first, and then they use each additional unit to fulfill progressively lower-valued goals. A fundamental tenet of economics is the rule of demand, which asserts that at a greater price, buyers would demand fewer units of a good. The law of diminishing marginal utility, which states that consumers use economic commodities to initially meet their most pressing wants, is what drives demand. The total quantity demanded at each price from all market customers is expressed by a market demand curve. Although price changes might be seen as movement along a demand curve, they do not by themselves cause demand to rise or fall. Demand fluctuates in both shape and size in reaction to fluctuations in customer choices, earnings, or associated economic goods—NOT to price changes.
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