According to the law of demand, as prices increase, quantity demanded increases. decreases. stays the same. disappears.

As prices increase, the quantity demanded decreases. This relationship is a fundamental principle in economics known as the law of demand, which states that consumers will buy less of a good or service when its price rises, all else being equal. Picture it like a favorite treat getting too pricey; your craving might still be there, but your willingness to splurge starts to wane! In real-world applications, this principle is evident in everyday shopping. Think about how when the price of avocado toast skyrockets at your local café, you might choose a less expensive breakfast option instead. Businesses monitor these demand shifts to help set their prices and understand customer behavior, which is crucial for staying competitive!