The law of demand is one of the most intuitive concepts in economics: when the price of something goes up, people buy less of it. When the price goes down, people buy more. This inverse relationship between price and quantity demanded holds true for almost every good and service.
Example: A streaming service charges $10/month — 50 million subscribers. They raise it to $15/month — subscribers drop to 40 million. Raise it to $25/month — only 20 million stay. Each price increase reduces the quantity demanded because some consumers decide the service is no longer worth the cost.
The demand curve slopes downward from left to right. Exceptions exist: Giffen goods (inferior goods where demand rises with price due to income effects) and Veblen goods (luxury items where higher prices actually increase desirability — think Rolex watches or Birkin bags). But these are rare exceptions to a nearly universal rule.. Exceptions exist: Giffen goods (inferior goods where demand rises with price due to income effects) and Veblen goods (luxury items where higher prices actually increase desirability — think Rolex watches or Birkin bags). But these are rare exceptions to a nearly universal rule.