Economics is the social science that studies how people interact with value; in particular, the production, distribution, and consumption of goods and services. Demand is the rate at which consumers want to buy a product. Demand theory describes the way in which a consumer’s change in demand of the quantity of a good or service affects the price of the product in the market. The theory states that the higher the price of a product is, all else equal, the less of it will be demanded, inferring a downward sloping demand curve. The theory of demand is a law that states the relationship between the quantity demanded of a product and its price. It assumes that all the other factors affecting the demand are constant. According to the law of demand theory, the quantity demanded of a commodity is inversely related to its price in the market. The presentation gives better understanding on the topic.

Jincy Anna Joy

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