Demand Law is the fundamental economic law that states that, all other factors remaining equal, an increase in price results in a decrease in demand for a product. The opposite is true as well: if prices are lowered, then demand for an item will generally increase when other conditions are held constant. In economics, this concept is known as the “inverse relationship between price and demand”. Put simply, the higher the price, the fewer people will want to buy it; the lower the price, the more people will be willing to make a purchase. This law can help businesses better understand pricing strategy, production levels, and target markets.