Example of Law of Demand

Law of demand is one of the principal of economics according to which as the price of normal good rises the demand for that good will decrease as people will buy its substitutes and as the price of normal good falls the demand for it will rise. Given below is the example of law of demand –

Suppose the price of Samsung and Dell laptop having almost identical features is $500, now if the Dell management reduces the prices by $50 to $450 than other things remaining constant the sales of Dell would increase as the buyers who were thinking of buying Samsung laptop would rethink their decision and will buy Dell laptop. In case Dell increases the laptop Price by $50 to $550 than sales would decline as consumers will go for Samsung Laptop because they are getting more or less same features in a product by paying less.

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