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Investments glossary

Demand Theory

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Quotes of the day:

Old is gold, but new is platinum.

— Amit

Demand theory is an economic principle relating to the relationship between consumer demand for goods and services and their prices in the market. Demand theory forms the basis for the demand curve, which relates consumer desire to the amount of goods available. As more of a good or service is available, demand drops and so does the equilibrium price.

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