Final answer:
The Law of Demand states that higher prices lead to lower quantity demanded, while lower prices lead to higher demand for a good, assuming all other factors are constant.
Step-by-step explanation:
The Law of Demand predicts that consumer demand will decline beyond a certain price point. This economic principle states that, if all other factors remain equal, the higher the price of a good, the less people will demand that good. Conversely, a lower price leads to a higher quantity demanded. This relationship occurs because as the price of a good increases, so does the opportunity cost associated with its purchase, leading consumers to forgo buying the product in favor of retaining the ability to buy other goods they value more.b