Theory

Law Of Demand

By TAMILARASAN Published March 16, 2026

The inverse relationship between price and quantity is called the law of demand. When the price of the commodity increases, demand for the commodity decreases; if the price of the commodity decreases, the demand for the commodity increases. Let's see the assumption for this law.

Assumption
1) No changes in the income
2) No changes in population
3) No changes in price of the related goods
4) No changes in the tastes and preferences of consumers
5) No expectations for future price reduction
6) No changes in climate conditions

Table

Diagram

Explain
(X) axis quantity of demand units, (y) axis price of the commodity. When the price of the commodity is 2, demand for that is very high. If the price of the commodity starts to rise, the quantity of demand is declining. That's why the demand curve slopes left to right downward.

Keywords

Economics perspective Law of demand Demand Assumption Demand diagram Demand table economics theory

Latest Explained

The image represent the FoodImportBillHits-CerealOutputDrops-ElNino-EnergyRisks

Explained / Jun 28, 2026

Cereals Dip 2% But Food Import Bill Hits $2.22 Trillion Record as Coffee, Cocoa Drive 7.9% Jump; Wheat Falls 3.8%, Soybeans Hit 432.3M Tons

FAO Food Outlook 2026 forecasts global cereal output to decrease 2% to 2.98 billion tonnes, buffered by carryover stocks, while demand rises 1%. Wheat falls 3.8% to 811 million tons and coarse grains drop 1.2%, but soybeans hit record 432.3 million tons. World food import bill rose 7.9% to record US$2.22 trillion in 2025, driven by coffee, cocoa, and fish as high-income countries saw 9.3% jump.

The image represent the women leadership and gender equity corporate ratio

Explained / Jun 26, 2026

Women in top jobs stalled at 30%: 95% of boards now have 1 woman, but CEO seats stay at just 19%

World Economic Forum June 2026 report finds women’s share in leadership rose from 27% to 30% in 10 years and board seats doubled to 29%, but hiring for C-suite and CEO roles stalled since 2022. Only 19% of CEOs are women as structural barriers like limited career paths, skewed networks, career breaks, and biased evaluations persist.

The image represent the global trade standard policy

Explained / Jun 23, 2026

From 15% to 90%: How Global Trade Standards Now Decide Which Economies Survive in the 21st Century

The World Development Report 2025 shows standards now govern 90% of global trade, up from 15% in the late-1990s. Developing countries face compliance barriers due to gaps in testing, regulation, and skills. Meeting quality, safety, and environmental standards is now essential for export competitiveness and access to global value chains.

Explained / Jun 20, 2026

WFP 'War Shock' Reality: Middle East Crisis Pushes 2.5M More in Somalia, 1.3M in Sri Lanka, 2.3M in Afghanistan Into Acute Food Insecurity as Oil Holds Above $100 Per Barrel

Three months after the UN World Food Programme warned Middle East conflict could push millions into starvation, the 'war shock' is reality. WFP's report finds 2.5M more people in Somalia, 1.3M in Sri Lanka, and 2.3M in Afghanistan in acute food insecurity as oil holds above $100/barrel.

Young child under blanket using smartphone at night, illustrating online safety statistic that 2 in 3 people globally face hate speech and harmful content online regularly

World News / Jun 30, 2026

Nearly 2 in 3 People Face Online Hate Speech Regularly as UNESCO Marks June 18 Countering Hate Speech Day

A new UNESCO report ahead of International Day for Countering Hate Speech on June 18 finds almost two-thirds of people worldwide are regularly exposed to online hate speech. The UN day marks the 2019 UN Strategy and Plan of Action on Hate Speech anniversary. UNESCO advocates media literacy and teacher training, hosting a 2026 worldwide webinar on online hate speech challenges.

The Image represent DigitalInclusionInitiative-1BillionYoungWorkers-FutureWork

World News / Jun 27, 2026

1 Billion Young Workers, 1 Chance: Why Digital Inclusion Will Decide Economic Growth in Developing Countries

Over 1 billion young people in developing countries will seek work in the coming decade. With nearly every job requiring digital tools, closing the digital divide through affordable connectivity and digital skills training is essential to unlock employment, boost productivity, attract investment, and drive poverty reduction.

The Image represent AgriConnect-UPfarmer-YieldJumps

World News / Jun 25, 2026

UP farmer yield jumps from 4 to 9 tonnes/hectare: How AgriConnect is reshaping farming for 240M people

World Bank Group’s AgriConnect in Uttar Pradesh is transforming farming for 240 million people. Direct-seeded rice trials show yield rising from 4 to 9 tonnes/hectare, costs down $120/hectare, huge water savings. UP-AGRIVERSE platform + $461M Aqua Bridge aquaculture deal add jobs in machinery, warehousing, logistics, and digital services, while scaling to 2M hectares could cut 230,000 tonnes CO2 equivalent.

World News / Jun 22, 2026

Nearly 1 in 4 EU Youth at Poverty Risk in 2025 as Rate Jumps 3.3 Points; Romania, Greece, Bulgaria See 14%+ Deprivation

In 2025, 24.2% of EU residents aged 15-29 were at risk of poverty or social exclusion, up 3.3 percentage points, with 19.6% at risk of poverty and 5.8% facing severe material and social deprivation. Romania 15.1%, Greece 14.7%, and Bulgaria 14.0% recorded the highest youth deprivation rates, while 10 member states were below 3.0% in 2019.

Latest Audio

China Exports Hit-EV exports-WEF annual report

Blog / Jun 24, 2026

Summer Davos in Dalian: China's Exports Hit $3.77 Trillion as Solar Exports Reach 68GW and EV Exports Jump to $9.1B Monthly, Yet Retail Sales Growth Slumps to 0.2%

At the World Economic Forum's Summer Davos in Dalian, World Bank data shows China's total goods and services exports at $3.77 trillion, up from virtually nothing in 1980. Renewable energy exports hit 68GW in March 2026 and EV exports reached $9.1 billion monthly, up from under $1 billion in 2022. Yet retail sales growth was just 0.2% year-over-year in April 2026, the lowest since 2022. China targets 5% GDP growth in 2026 as it balances dominance in manufacturing and clean energy with slowing domestic consumption.

Blog / Mar 31, 2026

Global Job Creation Slows Down: ILO Revises Expectations Amidst Declining Investment and Economic Uncertainty

The world bodies like the International Labour Organization (ILO), World Bank, and World Economic Forum (WEF) have come up with detailed figures that show the potential as well as the obstacles of investing investment into good employment opportunities in the world. The ILO in its World Employment and Social Outlook Update 2025 has reduced its expectations to create 53 million new jobs from the initial projection of 60 million new jobs in the world.

Blog / Mar 28, 2026

2025's Hottest Sectors: AI, Renewable Energy, Cybersecurity, and More

The growth in the global economy in the future is becoming more focused on sectors that are propelled by technological innovations, sustainability needs, healthcare growth, and the development of digital infrastructure in 2025. According to the Global Industry Projections and the Future of Jobs Report 2025 by the World Economic Forum, the demand for AI specialists, data scientists, machine-learning engineers, and AI governance professionals has been growing at a rapid rate, making AI an influential force in the economy and the main source of high-skilled jobs.

Blog / Mar 20, 2026

2025 Global FDI Trends: Divergence, Opportunities, and Risks in International Investment

FDI slowdowns due to sectoral or cyclical determinants rather than long-term trust.There are just some investors who are willing to take on a bit more risk for much larger scale and dynamics in Asia. And there are also frontier countries in Africa and Latin America that offer frontier investment opportunities with potentially high returns. It relates to global themes and the investor's level of objective (income, aggressive capital growth, and/or tax efficiency).

Editorial / Dec 1, 2025

The Gathering Storm: How Trump's Tariffs Forged BRICS Unity

In a world long dominated by the financial tides of the US dollar, a new story is unfolding, driven not by a grand, planned design but by an unexpected external force: the tariff policies of Donald Trump. His administration, in…

The image represents the economic crisis

Editorial / Dec 1, 2025

Fragile Economies in Crisis: World Bank Report Highlights Challenges and Opportunities for Growth

The new World Bank report, Fragile and Conflict-Affected Situations: Intertwined Crises, Multiple Vulnerabilities (2025), paints a sobering picture of the world's most vulnerable economies. Fragile and conflict-affected situations, or FCS, are defined in this report as states where weak institutions,…

Editorial / Jan 26, 2025

Jobs at the Forefront: World Bank's Strategy for a Resilient Global Economy

General economic losses. Uncertainty prevailed globally throughout 2025 due to conflict, distressed economic conditions, and dramatic climatic changes impacting social and governmental systems, with a lot of activity occurring during the year putting tremendous strain on these institutions of society.…