Law of Demand

Topics: Macroeconomics, Economics, Economics terminology Pages: 1 (282 words) Published: October 6, 2013
PRINCIPLES OF MACROECONOMICS ECO 201
6 October 2013
Law of Demand
Law of demand can be defined as the time table that shows the numerous quantities of a product that consumers are willing and able to buy at different prices during a specified time. The law of demand shows as a price of a product falls the demand rises and as the price raises the demand drops. Other factors such as income, substitutes, competition can be a factor in price and if income changes this can also affect the amounts purchased. People ordinarily do buy more of a product at a low price than they will when the price is high. Law of demand is an important aspect of economics, because it has a direct effect on consumer spending habits and trends. The law of demand is the concept to where the consumer is the driving force behind what society seeks to spend their income on during economic times. People have unlimited wants for things like oil, currency, and comfort, keeping in mind that the resources for satisfying these needs and other wants are limited. If things were not scarce and everything was freely available, then people wouldn’t be forced to make any sacrifices amongst their needs and wants. The constant changing demands of people, the needs and wants of the people keep increasing. Social wants always exceed what can be produced with the limited resources and time that is available. “The degree of scarcity is constantly changing” (Colander 5).

Works Cited
Colander, David C. Economics: Economics: Macro and Micro. New York: McGraw-Hill Irwin Publishing, 2010. Campbell R. McConnell, Stanley L. Brue and Sean M. Flynn: Economics: Principles, Problems, and Policies. New York: The McGraw-Hill Publishing, 2011

Cited: Colander, David C. Economics: Economics: Macro and Micro. New York: McGraw-Hill Irwin Publishing, 2010.
Campbell R. McConnell, Stanley L. Brue and Sean M. Flynn: Economics: Principles, Problems, and Policies. New York: The McGraw-Hill Publishing, 2011
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