The Law of Demand is a microeconomic law, which deals with the functioning of the economy as a whole. There is a direct relationship between the price of a good and the demand for it. This economic law refers to, when good's such as butter is priced high it can be substituted for mayonnaise which has decreased in price. For example, consumers will buy more of the mayonnaise because its price is decreased rather than buying butter which has an increase in price, both are almost the same goods but each has a different price. People will generally buy more of a good when the price is low and less of it when the price is high.
This is a rule that applies to most of the goods which is called normal goods. This means as the price of normal good increases, people will buy less of it because they will usually switch to cheaper goods. In other words, the amount of a good that consumers buy at a higher price is less because as the price of a good goes up, so does the value of the next best chocie of buying that good. Consumers will usually avoid buying a product or good that will make them give up on buying something else they value or want more.
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