Final answer:
The law of demand states that there is an inverse relationship between price and quantity demanded. When the price of a good or service increases, the quantity demanded decreases. Conversely, when the price decreases, the quantity demanded increases.
Step-by-step explanation:
The law of demand states that there is an inverse relationship between price and quantity demanded.
When the price of a good or service increases, the quantity demanded decreases. Conversely, when the price decreases, the quantity demanded increases.
For example, let's consider the market for smartphones. If the price of smartphones increases, fewer people will be able or willing to buy them, resulting in a lower quantity demanded. On the other hand, if the price of smartphones decreases, more people will be able to afford them, leading to a higher quantity demanded.