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    • Abstract
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    • Article
      • One-good and multi-good laws of demand
      • Law of demand for competitive firms and consumers with quasilinear utility
      • Multi-good laws of demand for a consumer
      • Laws of market demand when the income distribution is independent of price
      • Laws of demand in private ownership economies
    • See Also
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    • How to cite this article

law of demand

Michael Jerison and John K.-H. Quah
From The New Palgrave Dictionary of Economics, Second Edition, 2008
Edited by Steven N. Durlauf and Lawrence E. Blume
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We formulate several laws of individual and market demand and describe their relationship to neoclassical demand theory. The laws have implications for comparative statics and stability of competitive equilibrium. We survey results that offer interpretable sufficient conditions for the laws to hold and we refer to related empirical evidence. The laws for market demand are more likely to be satisfied if commodities are more substitutable. Certain kinds of heterogeneity across individuals make the laws more likely to hold in the aggregate even if they are violated by individuals.
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How to cite this article

Jerison, Michael and John K.-H. Quah. "law of demand." The New Palgrave Dictionary of Economics. Second Edition. Eds. Steven N. Durlauf and Lawrence E. Blume. Palgrave Macmillan, 2008. The New Palgrave Dictionary of Economics Online. Palgrave Macmillan. 19 January 2018 <http://www.dictionaryofeconomics.com/article?id=pde2008_L000215> doi:10.1057/9780230226203.0939

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