Image credit: Pixabay Economic theory contains many laws that pertain to the concept of supply and demand. These two basic components are a strong foundation of economic law and theory. For the demand factor, there are variables within the theory of demand. Demand and quantity demanded can be a confusing concept. The reason for this is partially because they sound so similar and, when many people talk about demand, what they really mean is quantity demanded. Demand The demand segment of economics surrounds the concept of need. Needs are what people see as a requirement in their daily lives. The economic law of demand dictates, all other factors being equal, the more expensive a good, the less of that item people demand. It is this perceived demand that affects the price. When the price of specific goods drop, all other things being equal, people will be more inclined to buy more of those items. When demand of an item changes, this means the demand curve shifts. There are a fe
