kysyntälaki

Kysyntälaki, in English known as the law of demand, is a fundamental economic principle describing the relationship between the price of a good or service and the quantity of it that consumers are willing and able to purchase at that price. Generally, the law of demand states that, all other factors being equal, as the price of a good or service increases, the quantity demanded will decrease, and conversely, as the price decreases, the quantity demanded will increase. This inverse relationship is a cornerstone of microeconomic analysis.

Several factors can influence demand besides price, often referred to as determinants of demand. These include consumer income, the prices of related goods (substitutes and complements), consumer tastes and preferences, expectations about future prices or income, and the number of buyers in the market. When these factors change, the entire demand curve can shift, indicating a change in demand at every price level, rather than a movement along the existing curve which represents a change in quantity demanded due to a price change. Understanding the law of demand and its determinants is crucial for businesses in setting prices and forecasting sales, and for policymakers in assessing the impact of various economic changes.