Have you ever wondered why prices go up when demand for a product increases? It's all thanks to the Law of Demand in economics. This law states that as the price of a product decreases, the quantity demanded for that product will increase, and vice versa. This inverse relationship between price and quantity demanded is crucial for understanding how markets work. When prices are high, consumers tend to buy less of a product because it becomes more expensive. On the other hand, when prices are low, consumers are more likely to buy more of a product because it is more affordable. This law also helps explain why companies lower their prices during sales or promotions - by reducing prices, they can attract more customers and increase their sales volume. It also illustrates the concept of elasticity, which measures how sensitive consumers are to changes in price. In summary, the Law of Demand is a fundamental principle in economics that plays a key role in shaping consumer behavior and market dynamics. Understanding this concept can help individuals and businesses make more informed decisions in the marketplace.