The Law of Demand states that all other factors being equal, when the price of a good or service increases, the demand for it will decrease. In other words, consumers are less likely to purchase something if its cost is too high relative to their income and the prices of competing products. This economic law is based on the idea of consumer preference, which suggests that people prefer products that maximize their utility at the lowest cost. This means that an increase in price can lead to a decrease in demand and vice versa. Therefore, understanding the Law of Demand is essential for businesses looking to maximize profits.