What effects the law od demand when the price of a good changes?

Answer 1

The law of demand states that, all else being equal, an increase in the price of a good typically leads to a decrease in the quantity demanded, while a decrease in price leads to an increase in demand. This inverse relationship occurs because consumers tend to substitute cheaper alternatives when prices rise and are more likely to purchase more of a good when it becomes cheaper. Additionally, changes in price can also affect consumer perceptions of value and purchasing power, further influencing demand. However, exceptions can exist for certain goods, such as Giffen or Veblen goods, where demand may behave contrary to this law.