Unit 2.1 · Demand
The Law of Demand
AO2Diagram required
Syllabus Requirement
The inverse relationship between price and quantity demanded, assuming ceteris paribus.
Assessment Objectives
AO2Application and Analysis
Summary
The law of demand explains the relationship between the price of a good or service and the quantity that consumers are willing and able to purchase. It highlights that demand only exists when consumers have both the desire and the financial means to buy a product at a specific price.