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1.4 Demand

Part of Basic Economic Concepts in AP® Macroeconomics. Read the opening section, then create a free account for the full interactive lesson, practice, and progress tracking.

The Law of Demand

The law of demand is a core economic principle asserting that, all other factors being equal, as the price of a good or service decreases, the quantity demanded increases, and as the price increases, the quantity demanded decreases. This negative relationship between price and quantity demanded is represented by a downward-sloping demand curve.

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