What happens to demand when the price of a product decreases, according to the Law of Demand?

The Law of Demand states that, all else being equal, when the price of a product decreases, the quantity demanded for that product tends to increase. This principle is grounded in consumer behavior, as lower prices generally make products more accessible and attractive to consumers. As the price falls, more people are likely to purchase the product because it fits better within their budgets, leading to an upward shift in the quantity demanded.

This relationship highlights the inverse correlation between price and quantity demanded: as prices drop, the motivation to buy increases, hence the demand rises. It is also essential to remember that this phenomenon occurs while other factors influencing demand, such as consumer income and preferences, remain constant. Thus, a decrease in price directly correlates with an increase in demand, confirming the answer.