• The law of demand concerns the changing desire of consumers to purchase goods and services at given prices.

  • Demand can refer either to the market demand for a particular good or to the aggregate demand for all goods in the economy.
  • Supply and demand determine the actual prices of goods and the volumes that change hands in the market.
  • Businesses study demand in order to set the price of products in order to meet demand and make a profit.
  • The demand curve shows how a decrease in the price of a good increases the quantity purchased.