as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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describe the law of demand.
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the law of demand states that a consumer's demand for a certain good or service is inversely related to its price. when the price of a good or service increases, the demand for it decreases, and vice versa. it follows that, as the price of a product increases, the consumer will buy less of it. this phenomenon is due to the fact that a consumer typically views any increase in price to mean a decrease in the level of utility they derive from the good or service.
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