What takes place when the buyer purchase more of a product when the prices drops and less?

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2026-03-06 14:55

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When a buyer purchases more of a product as the price drops, this behavior is referred to as the "law of demand." It indicates that there is an inverse relationship between price and quantity demanded: as prices decrease, consumers are incentivized to buy more because the product becomes more affordable. Conversely, when prices rise, buyers tend to purchase less due to the higher cost, leading to a decrease in quantity demanded. This dynamic reflects consumer behavior in response to changes in market prices.

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