• The law of demand is a fundamental principle of economics, which states that at a higher price, consumers will demand less of a good.

  • Demand results from the law of diminishing marginal utility, the fact that consumers use economic goods primarily to satisfy their most pressing needs.
  • The market demand curve expresses the sum of the quantity demanded at each price for all consumers in the market.
  • Changes in price may be reflected in the movement along the demand curve, but they do not in themselves increase or decrease demand.
  • The shape and magnitude of demand changes in response to changes in consumer preferences, incomes, or related economic benefits, and NOT to changes in prices.