Basic Approach on Demand and Law of Demand for Economics

Mr. Yelahanka Lokesh

Abstract

One of the most fundamental ideas in economics is the law of demand. It explains how market economies distribute resources and set the prices of goods and services that we see in daily transactions by combining the law of supply. According to the law of demand, the quantity bought varies inversely with price. In other words, the quantity demanded decreases as the price increases. Because of declining marginal utility, this happens. In other words, consumers utilize the initial units of an economic good they buy to fulfill their most pressing demands first, and then they use each additional unit to fulfill progressively lower-valued goals.