The theory of demand suggests that price and quantity demanded are:

The theory of demand illustrates the relationship between price and quantity demanded, emphasizing an inverse correlation. As the price of a good or service rises, the quantity demanded typically decreases, assuming all other factors remain constant. This occurs because consumers are less willing to purchase a product at a higher price, leading to a reduction in the quantity they demand. Conversely, when prices drop, demand usually increases, as the product becomes more affordable to a broader range of consumers.

This fundamental concept underpins the demand curve, which slopes downward from left to right on a graph, reflecting that higher prices lead to lower quantities demanded, while lower prices lead to higher quantities demanded. Understanding this theory is essential for analyzing how market conditions affect consumer behavior and overall market dynamics.