Law of Demand

Law of Demand actually says that the higher the price, the lower the quantity demanded, because consumers’ opportunity cost to acquire that good or service increases, and they must make more tradeoffs to acquire the more expensive product. It holds in most instances, except in case of Giffen good. It explains consumer choice behavior when the price changes. The law of demand states that, other things remaining same, the quantity demanded of a good increases when its price falls and decreases when the price rises.