Keeping this in mind I marked an ice cream cone at a low price of $1.50 each and I offered the best quality possible. I noticed that there were days when ice cream remained unsold. However, there were other days where there were not enough ice creams for the numbers of customers. Why did the ice cream sales fluctuate in this manner? To understand it, I took a look at the relationship between price and quantity demanded.
The law of demand states that, if all other factors remain equal, the higher the price, the less people will demand a good. In other words, the higher the price, the lower the quantity demanded. The amount customers buy at a higher price is less because, as the price of a good goes up, so does the opportunity cost of buying that good. The demand curve shows the relationship between price and quantity demanded; therefore, the demand curve is a downward slope. The higher the price the less the quantity demanded, and the lower the price, the more quantity will be