The law of demand states that there is a negative, relation between the price of a good and the quantity demanded ' ceteris Paribas
I. Explain the meaning of this statement above and give practical examples .
The law of demand states that as the price of a good or service decreases, the quantity demanded of that good or service will increase, and conversely, as the price of a good or service increases, the quantity demanded will decrease, all other factors being constant.
In practical terms, this means that when the price of a product decreases, consumers are more willing and able to purchase more of that product. For example, if the price of smartphones drops, more people may be inclined to buy one. On the other hand, if the price of a luxury car increases, the demand for that specific car model may decrease as fewer people are willing to pay the higher price.
Overall, the law of demand helps to explain consumer behavior and how changes in price can affect the quantity of goods or services demanded in the market.