Toby is that you?????
The law of demand states that as price of an object goes up, the quantity goes down. However, as the price falls then quantity rises. IF price falls, demand increases and if price rises, demand decreases.
When price increases by 1%, demand falls by 3%.
if demand falls due to change in price of commodity its terms in Economics as contraction in demand, and if demand falls due to other reasons its term decrease in demand...
If the cost of supply falls for each unit of supply (a shift of the supply curve right), the change in price depends on the price elasticity of demand: Price is unchanged when price elasticity of demand is infinite. Price falls when price elasticity of demand is less than infinite.
A contraction in demand is caused by an increase in Price and illustrated by a movement up the demand curve. A decrease in demand is caused by any non-price factor (e.g. advertising, tastes and preferences and price of substitute goods) and is illustrated by an inward shift in the demand curve.
As price rises, demand falls, and vice versa
if the demand for Kroger stock falls
c)how buyers will cut back or increase their demand when price rises or falls =)
In this case supply of goods surplus in the market and then their is cahnce to decreases in prices for the purpose of rises in demand.
The mechanism is call "The Supply and Demand Curve"
it increases
yes