Cryptocurrency Q&A
What is the relationship between price and demand?
What is the relationship between price and demand?
Dario
Wed Jan 22 2025
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answers
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I'm trying to understand the correlation between price and demand. Specifically, how does an increase or decrease in price affect the demand for a product or service?
5 answers
amelia_harrison_architect
Fri Jan 24 2025
The connection between price and demand exhibits an inverse relationship.
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TaegeukChampionCourageousHeartWarrior
Fri Jan 24 2025
When we say they are inversely related, we imply a specific interaction. As the cost of a product rises, consumers tend to purchase less of it.
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GeishaCharm
Fri Jan 24 2025
Conversely, when prices fall, demand typically increases as more people can afford to buy the good.
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Federico
Thu Jan 23 2025
This phenomenon is rooted in economic theory, specifically the law of diminishing marginal utility.
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BusanBeauty
Thu Jan 23 2025
According to this law, as more of a good is consumed, the additional satisfaction or utility derived from each subsequent unit decreases.
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