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Definition of Law of Demand


Definition: A common definition of law of demand is given in the article The Economics of Demand:
    "The law of demand states that, ceteribus paribus (latin for 'assuming all else is held constant'), the quantity demanded for a good rises as the price falls. In other words, the quantity demanded and price are inversely related."
The law of demand implies a downward sloping demand curve, with quantity demanded increasing as prices decrease. There are theoretical cases where the law of demand does not hold, such as Giffen goods.

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