Why do price and quantity demanded move in the opposite direction?

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2026-08-03 12:10

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Price and quantity demanded move in opposite directions due to the law of demand, which states that as the price of a good or service decreases, the quantity demanded generally increases, and vice versa. This inverse relationship occurs because lower prices make products more affordable, encouraging consumers to purchase more. Conversely, higher prices tend to discourage purchases, leading to a decrease in quantity demanded. Thus, price acts as a signal to consumers about the relative scarcity and value of goods.

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