Law of demand: Difference between revisions
(Created page with '==Statement== The '''law of demand''' states the following equivalent things: * The price-elasticity of demand for a good is non-positive, and typically negative. * As the ...') |
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The '''law of demand''' states the following equivalent things: | The '''law of demand''' states the following equivalent things: | ||
* The [[price-elasticity of demand]] for a good is non-positive | * The [[price-elasticity of demand]] for a good is negative, or at best, non-positive. | ||
* | * ''[[ceteris paribus]]'', as the price of a good increases, the demand for it decreases (or at best, remains the same). | ||
* | * ''[[ceteris paribus]]'', as the price of a good decreases, the demand for it increases (or at best, remains the same). | ||
Goods satisfying the law of demand are termed [[ordinary good]]s. Examples of goods that (appear to) fail the law of demand are [[Veblen good]]s and [[Giffen good]]s. | Goods satisfying the law of demand are termed [[ordinary good]]s. Examples of goods that (appear to) fail the law of demand are [[Veblen good]]s and [[Giffen good]]s. | ||
Revision as of 21:54, 25 March 2009
Statement
The law of demand states the following equivalent things:
- The price-elasticity of demand for a good is negative, or at best, non-positive.
- ceteris paribus, as the price of a good increases, the demand for it decreases (or at best, remains the same).
- ceteris paribus, as the price of a good decreases, the demand for it increases (or at best, remains the same).
Goods satisfying the law of demand are termed ordinary goods. Examples of goods that (appear to) fail the law of demand are Veblen goods and Giffen goods.