In the context of demand and supply, the principle that states that as the price of a good increases, the quantity demanded decreases is known as the law of ______.

The principle is called the law of demand. It says that when a product’s price goes up, people normally buy less of it, and when the price falls, they buy more. The idea comes from the fact that higher prices make the good less attractive compared to other options. For example, if a candy bar costs $2 and then rises to $3, many students will skip it or switch to a cheaper snack, showing the law of demand in action. This rule helps explain how markets balance supply and demand.