Demand describes the amount of goods or services that consumers want to (and are able to) pay to purchase that good or service. Before learning more about the details of demand, watch this video to get a basic understanding about what it is and its importance to understanding economic behavior.
The law of demand states that, other things being equal,
- More of a good will be bought the lower its price
- Less of a good will be bought the higher its price
Ceteris paribus means “other things being equal.”