This demand curve demonstrates the law of demand. The law of demand states that as the price of a good rises, the quantity demanded of that good will . As the price of a good falls, the quantity demanded of that good will .

Fall

Rise

Explanation:

This demand curve demonstrates the law of demand. The law of demand states all other things remaining equal, as the price of a good or service rises, the quantity demanded of that good will FALL OR DECREASE. As the price of a good or services falls, the quantity demanded of that good will RISE OR INCREASE.

The demand curve is also downward sloping. Consumers buy more at lower price and buy less at higher price. Higher price reduces their purchasing power while lower price increases their purchasing power.

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