Understanding Law of Demand in Microeconomics

As you all know, the economy runs because someone is willing and able to purchase a product/service (from someone else who is willing to sell it). This demand is what sets sales and economic activity in motion. It refers to the quantity of a particular product or service that consumers will buy at a particular price point. Now, let's watch the upcoming video and learn more about demand from Chris.

The law of demand states that demand is inversely proportional to price. The demand curve shows the quantity of a particular good or service demanded at a particular price point. The curve may or may not be linear. 
 

Nevertheless, for most studies and analyses, a linear demand curve is used. Now, think about (and discuss with your course peers) the assumptions that we might be making while using a linear demand curve.

Additional Learning

To expand your knowledge on the law of demand, you can read the following article: The Law of Demand, Economics Discussion